Reverse DCF

What growth does the market imply for SIGMA?

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

aggressive

11.7% 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

₹46

Historical Growth

2.9%

FCF Yield

3.81%

Price / FCF

26.3x

Plain English

To justify today's price of $45.52, SIGMA.NS needs to grow its free cash flow at 11.7% per year for the next 10 years. That is 8.7% faster than its historical growth rate of 2.9%. 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
Historical2.9%₹23-48.6%
Half implied5.8%₹29-35.9%
GDP rate10.0%₹40-11.8%
Implied11.7%₹46+0.3%

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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.