Reverse DCF
What growth does the market imply for VEDL?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
-4.0% 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
₹305
Historical Growth
14.7%
FCF Yield
12.51%
Price / FCF
8.0x
Plain English
To justify today's price of ₹305.40, VEDL.NS needs to grow its free cash flow at -4.0% per year for the next 10 years. That is 18.6% slower than its historical growth rate of 14.7%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Implied | -4.0% | ₹305 | +0.0% |
| Half implied | -2.0% | ₹365 | +19.7% |
| GDP rate | 10.0% | ₹1,050 | +244.0% |
| Historical | 14.7% | ₹1,555 | +409.2% |
At Historical Growth Rate
DCF horizon: 10 years. At 14.7% growth, the model values VEDL at ₹1,555, above today's ₹305.
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Bear/base/bull scenarios, sensitivity heatmap, reverse DCF, 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.