Reverse DCF

What growth does the market imply for SUBEXLTD?

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

very aggressive

23.4% 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 2.0%. High execution risk.

Current Price

₹9

Historical Growth

2.0%

FCF Yield

1.42%

Price / FCF

70.3x

Plain English

To justify today's price of $9.30, SUBEXLTD.NS needs to grow its free cash flow at 23.4% per year for the next 10 years. That is 21.4% faster than its historical growth rate of 2.0%. 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
Historical2.0%₹2-75.6%
GDP rate10.0%₹4-60.5%
Half implied11.7%₹4-55.9%
Implied23.4%₹9-1.0%

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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.