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.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 8.5% | ₹910 | -69.7% |
| GDP rate | 10.0% | ₹1,037 | -65.5% |
| Half implied | 11.4% | ₹1,166 | -61.2% |
| Implied | 22.7% | ₹2,980 | -0.9% |
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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.