Reverse DCF

What growth does the market imply for RADICO?

Working backwards from the current price to find the FCF growth assumption baked in.

very aggressive

22.7% implied annual FCF growth

The market is pricing in exceptional growth that only a handful of companies sustain for a decade. For context, this company has historically grown at 8.5%. High execution risk.

Current Price

₹3,006

Historical Growth

8.5%

FCF Yield

1.27%

Price / FCF

78.8x

Plain English

To justify today's price of $3006.40, RADICO.NS needs to grow its free cash flow at 22.7% per year for the next 10 years. That is 14.2% faster than its historical growth rate of 8.5%. At its historical growth rate, the stock cannot justify its current price within a 20-year horizon. The market is pricing in a step-change in performance.

Adjust Assumptions

9.8%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Historical8.5%₹910-69.7%
GDP rate10.0%₹1,037-65.5%
Half implied11.4%₹1,166-61.2%
Implied22.7%₹2,980-0.9%

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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.