标题: Fun with growth rates [打印本页] 作者: fishmarket 时间: 2011-7-13 17:11 标题: Fun with growth rates
The equity section sure goes through a heck of a lot of detail on discounting stuff using growth rates:
Dividends, Free Cashflow or Residual Income.
But what growth rates to use?
Doing a recent question I was given EPS growth rate.
Now I think that EPS growth should be the same a intrinsic growth rate (bxROE) given a stable payout ratio and D/E
so my when question is:
are there any time when I must __not__ use the intrinsic growth (=bROE) or do I __always__ need to find it and use it?
Thank you作者: tarunajwani 时间: 2011-7-13 17:11
Depends on the information provided. If they give you a growth rate to use, use it. If not, then find it.
NO EXCUSES作者: brainsX 时间: 2011-7-13 17:11
Related question :
when is the growth rate for earnings the same as growth rate for dividends ?作者: chandsingh 时间: 2011-7-13 17:11
it's pretty much universal..
or implied growth = (P * r - B * ROE)/(P-B)作者: comp_sci_kid 时间: 2011-7-13 17:11
my confusion comes from one question where they gave me growth of EPS, and and also gave my the required rate of return. Funny thing was r and g were exactly the same!
"This can't be!" I thought. The denominator will be zero!
The sneaky solutions then go ahead and calculate the intrinsic g which was less than EPS g and with that calumniation the problem becomes much much easier!
