Reverse DCF
What growth does the market imply for ROTO?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
27.7% 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 1.4%. High execution risk.
Current Price
₹65
Historical Growth
1.4%
FCF Yield
1.14%
Price / FCF
88.1x
Plain English
To justify today's price of ₹65.32, ROTO.NS needs to grow its free cash flow at 27.7% per year for the next 10 years. That is 26.2% faster than its historical growth rate of 1.4%. 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 | 1.4% | ₹8 | -87.5% |
| GDP rate | 10.0% | ₹16 | -74.8% |
| Half implied | 13.8% | ₹22 | -65.8% |
| Implied | 27.7% | ₹65 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 1.4% growth, the model values ROTO at ₹8, below today's ₹65.
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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.