Reverse DCF

What growth does the market imply for SAREGAMA?

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

aggressive

16.4% 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

₹340

Historical Growth

12.0%

FCF Yield

2.60%

Price / FCF

38.5x

Plain English

To justify today's price of $340.30, SAREGAMA.NS needs to grow its free cash flow at 16.4% per year for the next 10 years. That is 4.4% faster than its historical growth rate of 12.0%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.

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 implied8.2%₹182-46.4%
GDP rate10.0%₹209-38.6%
Historical12.0%₹243-28.6%
Implied16.4%₹340-0.2%

At Historical Growth Rate

It would take 19 years for SAREGAMA to organically grow into today's price assuming its historical FCF growth of 12.0%.

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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.