Reverse DCF

What growth does the market imply for VARDHACRLC?

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

conservative

2.7% 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

₹35

Historical Growth

-4.2%

FCF Yield

7.44%

Price / FCF

13.4x

Plain English

To justify today's price of $35.30, VARDHACRLC.NS needs to grow its free cash flow at 2.7% per year for the next 10 years. That is 6.9% faster than its historical growth rate of -4.2%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

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
Historical-4.2%₹21-39.8%
Half implied1.3%₹32-10.0%
Implied2.7%₹35-0.5%
GDP rate10.0%₹61+73.2%

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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.