Reverse DCF

What growth does the market imply for VOLTAS?

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

very aggressive

24.1% 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 14.1%. High execution risk.

Current Price

₹1,403

Historical Growth

14.1%

FCF Yield

1.14%

Price / FCF

87.8x

Plain English

To justify today's price of $1402.60, VOLTAS.NS needs to grow its free cash flow at 24.1% per year for the next 10 years. That is 10.0% faster than its historical growth rate of 14.1%. 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.

Adjust Assumptions

9.8%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
GDP rate10.0%₹429-69.4%
Half implied12.1%₹513-63.4%
Historical14.1%₹612-56.4%
Implied24.1%₹1,391-0.8%

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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.