Reverse DCF

What growth does the market imply for SOTL?

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

very aggressive

29.8% 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 4.9%. High execution risk.

Current Price

₹365

Historical Growth

4.9%

FCF Yield

0.93%

Price / FCF

108.0x

Plain English

To justify today's price of $365.15, SOTL.NS needs to grow its free cash flow at 29.8% per year for the next 10 years. That is 24.8% faster than its historical growth rate of 4.9%. At its historical growth rate, the stock cannot justify its current price within a 20-year horizon. The market is pricing in a step-change in performance.

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
Historical4.9%₹64-82.6%
GDP rate10.0%₹89-75.7%
Half implied14.9%₹125-65.9%
Implied29.8%₹364-0.3%

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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.

SOTL Reverse DCF — Market Implies 29.8% FCF Growth | YieldIQ