A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

anonymous

  • 5 years ago

which growth rate is taken in the valuation .. is it the gdp or ebitda growth rate.. please reply

  • This Question is Closed
  1. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    The growth rate in valuation is the growth rate in your company's numbers, but GDP growth lurks in the background. If you are in a slow growing economy, odds are that your growth rates will also be lower (though not necessarily equal to the GDP growth rate)

  2. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    We have opted for perpetuity growth rate for a company as a near by number for country's GDP growth rate keepin in account the inflation rate. However, the particular industry is growing at much higher rate than the GDP. Please suggest if I to account for the industry growth as well?

  3. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    For perpetual growth, you have to stick with GDP growth. If your sector has high growth, add to your high growth period until the sector's growth stabilizes. After all, sectors face the same mathematical challenge of not being able to grow faster than the economy for the long term.

  4. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    The growth rate is calculate using arithmetical, geometric or regression?

  5. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Thanku Aswath Sir!!!

  6. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.