Reverse DCF
What growth does the market imply for RMC?
Working backwards from the current price to find the FCF growth assumption baked in.
unrealistic
40.5% implied annual FCF growth
The market is pricing in hyper-growth that virtually no established company has sustained for 10 years. This implies either a structural disruption scenario or significant overvaluation.
Current Price
₹504
Historical Growth
18.0%
FCF Yield
0.48%
Price / FCF
207.2x
Plain English
To justify today's price of $504.30, RMC.NS needs to grow its free cash flow at 40.5% per year for the next 10 years. That is 22.5% faster than its historical growth rate of 18.0%. 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 |
|---|---|---|---|
| GDP rate | 10.0% | ₹8 | -98.5% |
| Historical | 18.0% | ₹56 | -88.9% |
| Half implied | 20.2% | ₹75 | -85.0% |
| Implied | 40.5% | ₹505 | +0.1% |
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Bear/base/bull scenarios, sensitivity heatmap, Monte Carlo, and more.
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.