Reverse DCF

What growth does the market imply for SRF?

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

aggressive

14.1% 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

₹2,498

Historical Growth

3.4%

FCF Yield

2.61%

Price / FCF

38.4x

Plain English

To justify today's price of $2498.00, SRF.NS needs to grow its free cash flow at 14.1% per year for the next 10 years. That is 10.8% faster than its historical growth rate of 3.4%. 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

9.8%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Historical3.4%₹975-61.0%
Half implied7.1%₹1,358-45.6%
GDP rate10.0%₹1,757-29.7%
Implied14.1%₹2,500+0.1%

See full DCF analysis

Bear/base/bull scenarios, sensitivity heatmap, Monte Carlo, and more.

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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.

SRF Reverse DCF — Market Implies 14.1% FCF Growth | YieldIQ