Reverse DCF
What growth does the market imply for SAPPHIRE?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
16.1% implied annual FCF growth
The market is pricing in above-average growth. Achievable for a high-quality business but leaves limited margin for error — any slowdown could hurt the price.
Current Price
₹173
Historical Growth
9.7%
FCF Yield
3.36%
Price / FCF
29.8x
Plain English
To justify today's price of ₹173.45, SAPPHIRE.NS needs to grow its free cash flow at 16.1% per year for the next 10 years. That is 6.4% faster than its historical growth rate of 9.7%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Half implied | 8.0% | ₹75 | -57.0% |
| Historical | 9.7% | ₹90 | -48.1% |
| GDP rate | 10.0% | ₹94 | -46.1% |
| Implied | 16.1% | ₹173 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 9.7% growth, the model values SAPPHIRE at ₹90, below today's ₹173.
See full DCF analysis
Bear/base/bull scenarios, sensitivity heatmap, reverse DCF, 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.