Reverse DCF

What growth does the market imply for RPEL?

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

very aggressive

32.9% 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 18.0%. High execution risk.

Current Price

₹725

Historical Growth

18.0%

FCF Yield

0.76%

Price / FCF

131.0x

Plain English

To justify today's price of $725.10, RPEL.NS needs to grow its free cash flow at 32.9% per year for the next 10 years. That is 14.9% 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.

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
GDP rate10.0%₹129-82.2%
Half implied16.5%₹212-70.8%
Historical18.0%₹238-67.1%
Implied32.9%₹732+0.9%

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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.