Investing tools
DCF calculator for Indian stocks
Pick a company, see the growth its price already assumes, then change the assumptions and watch the fair value move.
Start with a company
Three companies the market prices very differently.
Or start from a company: browse by sector, read what management said on the last call, then come back and put a number on it.
How to read this valuation
- Start from the price, not the forecast. A normal DCF asks you to guess growth and hands back a fair value. Run backwards, it takes today's price and solves for the earnings growth the market is already assuming.
- Compare that with what the company has done. The historical profit and EPS CAGR sit beside the implied number. A price that needs 25% a year from a business that has compounded at 10% is asking a lot, and the gap is the risk you are taking on.
- Then apply your own view. Change the growth rate, how long it lasts, how it fades and the return you require. A valuation that flips on a one-point change in the discount rate is telling you something about itself.
- Mind the caveats. Normalized net profit stands in for owner earnings, not full free cash flow; terminal growth is capped at 6%, roughly nominal GDP; cyclicals are flagged because a peak-earnings base overstates value. This is an analytical tool, not investment advice.