Reverse DCF
What growth does the market imply for PRSMJOHNSN?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
19.2% implied annual FCF growth
The market is pricing in above-average growth. Achievable for a high-quality business but leaves limited margin for error — any slowdown could hurt the price.
Current Price
₹118
Historical Growth
5.0%
FCF Yield
2.45%
Price / FCF
40.9x
Plain English
To justify today's price of ₹117.59, PRSMJOHNSN.NS needs to grow its free cash flow at 19.2% per year for the next 10 years. That is 14.2% faster than its historical growth rate of 5.0%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 5.0% | ₹27 | -77.0% |
| Half implied | 9.6% | ₹46 | -60.7% |
| GDP rate | 10.0% | ₹48 | -59.0% |
| Implied | 19.2% | ₹118 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 5.0% growth, the model values PRSMJOHNSN at ₹27, below today's ₹118.
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Run Full Analysis →This is an analytical tool, not investment advice. Implied growth is a mathematical inversion of the DCF model and depends on WACC and terminal growth assumptions. YieldIQ is not registered with SEBI as an investment adviser.