Reverse DCF
What growth does the market imply for SGL?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
-2.1% implied annual FCF growth
The market is pricing in below-GDP growth — very conservative assumption. If the company delivers anywhere near its historical rate, there is significant upside.
Current Price
₹12
Historical Growth
20.0%
FCF Yield
15.44%
Price / FCF
6.5x
Plain English
To justify today's price of $11.99, SGL.NS needs to grow its free cash flow at -2.1% per year for the next 10 years. That is 22.1% slower than its historical growth rate of 20.0%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Implied | -2.1% | ₹12 | +0.8% |
| Half implied | -1.0% | ₹13 | +12.0% |
| GDP rate | 10.0% | ₹38 | +214.6% |
| Historical | 20.0% | ₹87 | +629.6% |
At Historical Growth Rate
It would take 3 years for SGL to organically grow into today's price assuming its historical FCF growth of 20.0%.
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Bear/base/bull scenarios, sensitivity heatmap, Monte Carlo, 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.