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
25.5% 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 13.4%. High execution risk.
Current Price
₹59
Historical Growth
13.4%
FCF Yield
1.33%
Price / FCF
74.9x
Plain English
To justify today's price of $59.27, ROTO.NS needs to grow its free cash flow at 25.5% per year for the next 10 years. That is 12.2% faster than its historical growth rate of 13.4%. 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 |
|---|---|---|---|
| GDP rate | 10.0% | ₹17 | -70.9% |
| Half implied | 12.8% | ₹22 | -63.5% |
| Historical | 13.4% | ₹23 | -61.7% |
| Implied | 25.5% | ₹59 | +0.0% |
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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.