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.
Showing Powerica. See Powerica company page →
What the price assumes
- Growth the price implies
- 21.3% a year
- for 7 years, fading to 4%
- It has actually compounded at
- Not enough history
- The gap
- —
- between what it did and what it must do
Price today ₹512.35
Your assumptions
Change any of these and the value moves. A valuation that flips on a one-point change in the required return is telling you something.
Value on these assumptions
₹559.28
Against today's price
+9%
7 projected years, then a terminal value at 4.0%.
Normalized net profit is discounted as a proxy for owner earnings, not full free cash flow. An analytical tool, not investment advice.
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.