Reverse DCF

What growth does the market imply for SAPPHIRE?

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

reasonable

12.4% implied annual FCF growth

The market's growth assumption looks achievable — it is in line with or below what this company has historically delivered.

Current Price

₹173

Historical Growth

14.2%

FCF Yield

4.37%

Price / FCF

22.9x

Plain English

To justify today's price of $173.14, SAPPHIRE.NS needs to grow its free cash flow at 12.4% per year for the next 10 years. That is 1.8% slower than its historical growth rate of 14.2%. 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
Half implied6.2%₹93-46.3%
GDP rate10.0%₹137-20.6%
Implied12.4%₹173-0.4%
Historical14.2%₹204+17.9%

At Historical Growth Rate

It would take 8 years for SAPPHIRE to organically grow into today's price assuming its historical FCF growth of 14.2%.

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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.