Reverse DCF

What growth does the market imply for UNIONBANK?

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

conservative

0.9% implied annual FCF growth

The market is pricing in below-GDP growth — very conservative assumption. If the company delivers anywhere near its historical rate, there is significant upside.

Current Price

₹188

Historical Growth

20.0%

FCF Yield

10.99%

Price / FCF

9.1x

Plain English

To justify today's price of $188.40, UNIONBANK.NS needs to grow its free cash flow at 0.9% per year for the next 10 years. That is 19.1% slower than its historical growth rate of 20.0%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

Adjust Assumptions

13.3%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Half implied0.5%₹184-2.2%
Implied0.9%₹190+0.9%
GDP rate10.0%₹358+90.2%
Historical20.0%₹741+293.1%

At Historical Growth Rate

It would take 3 years for UNIONBANK to organically grow into today's price assuming its historical FCF growth of 20.0%.

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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.