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.
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.
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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 | 7.1% | ₹383 | -46.3% |
| GDP rate | 10.0% | ₹500 | -29.9% |
| Historical | 10.7% | ₹530 | -25.6% |
| Implied | 14.1% | ₹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.
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.