Reverse DCF
What growth does the market imply for UFO?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
27.0% 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 11.4%. High execution risk.
Current Price
₹71
Historical Growth
11.4%
FCF Yield
1.29%
Price / FCF
77.3x
Plain English
To justify today's price of $71.25, UFO.NS needs to grow its free cash flow at 27.0% per year for the next 10 years. That is 15.5% faster than its historical growth rate of 11.4%. 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.
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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% | ₹14 | -79.8% |
| Historical | 11.4% | ₹17 | -76.3% |
| Half implied | 13.5% | ₹21 | -70.6% |
| Implied | 27.0% | ₹71 | -0.1% |
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Bear/base/bull scenarios, sensitivity heatmap, Monte Carlo, and more.
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.