Reverse DCF

What growth does the market imply for RCF?

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

conservative

-8.6% implied annual FCF growth

The market is pricing in below-GDP growth — very conservative assumption. If the company delivers anywhere near its historical rate, there is significant upside.

Current Price

₹134

Historical Growth

9.6%

FCF Yield

20.83%

Price / FCF

4.8x

Plain English

To justify today's price of $133.72, RCF.NS needs to grow its free cash flow at -8.6% per year for the next 10 years. That is 18.2% slower than its historical growth rate of 9.6%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

Adjust Assumptions

11.1%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Implied-8.6%₹134+0.2%
Half implied-4.3%₹191+42.9%
Historical9.6%₹596+345.7%
GDP rate10.0%₹615+360.1%

At Historical Growth Rate

It would take 3 years for RCF to organically grow into today's price assuming its historical FCF growth of 9.6%.

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Bear/base/bull scenarios, sensitivity heatmap, Monte Carlo, and more.

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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.

RCF Reverse DCF — Market Implies -8.6% FCF Growth | YieldIQ