Reverse DCF
What growth does the market imply for SMLMAH?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
20.4% implied annual FCF growth
The market is pricing in exceptional growth that only a handful of companies sustain for a decade. For context, this company has historically grown at 14.8%. High execution risk.
Current Price
₹3,917
Historical Growth
14.8%
FCF Yield
2.04%
Price / FCF
49.1x
Plain English
To justify today's price of $3916.80, SMLMAH.NS needs to grow its free cash flow at 20.4% per year for the next 10 years. That is 5.6% faster than its historical growth rate of 14.8%. At its historical growth rate, the stock would take 18 years to justify today's price. The market is effectively paying for a perfect future.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| GDP rate | 10.0% | ₹1,632 | -58.3% |
| Half implied | 10.2% | ₹1,664 | -57.5% |
| Historical | 14.8% | ₹2,470 | -36.9% |
| Implied | 20.4% | ₹3,916 | -0.0% |
At Historical Growth Rate
It would take 18 years for SMLMAH to organically grow into today's price assuming its historical FCF growth of 14.8%.
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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.