Episode 30: Modeling Traditional Growth | Value of Growth Lecture Series

Paul Johnson

Paul Johnson

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In this video, I use 5 simple examples, each with a different growth rate, to illustrate the impact NOPAT growth has on valuation. I show that a company creates significant value when it grows NOPAT faster than its discount rate, which is the true definition of hypergrowth.

I use the five examples from this video to create a visual DCF to demonstrate the impact different stages of growth have on a company’s valuation in the next video.

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