Reverse DCF

What growth does the market imply for SFL?

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

aggressive

14.1% 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.

Reverse DCF computed against price ₹713 · captured just nowRefresh for current price →

Current Price

₹713

Historical Growth

10.7%

FCF Yield

3.50%

Price / FCF

28.6x

Plain English

To justify today's price of ₹712.60, SFL.NS needs to grow its free cash flow at 14.1% per year for the next 10 years. That is 3.5% faster than its historical growth rate of 10.7%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.

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 implied7.1%₹383-46.3%
GDP rate10.0%₹500-29.9%
Historical10.7%₹530-25.6%
Implied14.1%₹713+0.0%

At Historical Growth Rate

DCF horizon: 10 years. At 10.7% growth, the model values SFL at ₹530, below today's ₹713.

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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.

SFL Reverse DCF — Market Implies 14.1% FCF Growth | YieldIQ