Reverse DCF

What growth does the market imply for VEDL?

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

reasonable

10.6% implied annual FCF growth

The market's growth assumption looks achievable for a quality business. This is within normal range — the stock is not pricing in heroic execution.

Current Price

₹783

Historical Growth

-10.0%

FCF Yield

5.12%

Price / FCF

19.5x

Plain English

To justify today's price of $783.30, VEDL.NS needs to grow its free cash flow at 10.6% per year for the next 10 years. That is 20.6% faster than its historical growth rate of -10.0%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

Adjust Assumptions

11.2%
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-10.0%₹33-95.8%
Half implied5.3%₹460-41.3%
GDP rate10.0%₹736-6.0%
Implied10.6%₹780-0.5%

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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.

VEDL Reverse DCF — Market Implies 10.6% FCF Growth | YieldIQ