Angie · learn
Growth rate
Year-one growth, faded toward the perpetual rate across the horizon. Left blank it comes from the company's own history, capped at the sector ceiling, and a genuine decline is kept rather than floored up.
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- Perpetual growth — The rate the company is assumed to grow at forever, once the explicit horizon ends. It feeds the Gordon-growth terminal value and cannot sensibly exceed the economy's long-run growth.
- Horizon — How many years are projected explicitly before the terminal value takes over. Longer horizons matter only when growth genuinely exceeds the perpetual rate.
- DCF base — The figure the projection actually starts from: a trend-fitted or median value across several years, so one distorted year cannot become a runaway base. It can sit far from the latest year.
- Classification — The company's sector, which sets the growth ceiling and terminal method, combined with its lifecycle stage read from its own cash-flow history. Re-derived every run, and you can override it.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
