Reverse DCF

What growth does the market imply for RELAXO?

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

reasonable

11.8% implied annual FCF growth

The market's growth assumption looks achievable for a quality business. This is within normal range — the stock is not pricing in heroic execution.

Current Price

₹306

Historical Growth

-1.5%

FCF Yield

3.81%

Price / FCF

26.3x

Plain English

To justify today's price of $306.09, RELAXO.NS needs to grow its free cash flow at 11.8% per year for the next 10 years. That is 13.3% faster than its historical growth rate of -1.5%. 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
Historical-1.5%₹107-65.2%
Half implied5.9%₹191-37.7%
GDP rate10.0%₹263-14.0%
Implied11.8%₹304-0.5%

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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.