Reverse DCF

What growth does the market imply for SIS?

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

conservative

-1.7% 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

₹338

Historical Growth

8.3%

FCF Yield

12.34%

Price / FCF

8.1x

Plain English

To justify today's price of $338.00, SIS.NS needs to grow its free cash flow at -1.7% per year for the next 10 years. That is 10.0% slower than its historical growth rate of 8.3%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

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
Implied-1.7%₹337-0.4%
Half implied-0.8%₹362+7.2%
Historical8.3%₹787+132.8%
GDP rate10.0%₹904+167.4%

At Historical Growth Rate

It would take 3 years for SIS to organically grow into today's price assuming its historical FCF growth of 8.3%.

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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.