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Terminal Value Myth 3: Growth is good, more growth is better!
Published 1 week ago
Description
In the perpetual growth model, increasing growth while holding all else constant will always increase value. That is the problem. If you follow consistency requirements, increasing growth will affect your cash flows and the effect of growth becomes ambiguous. It can increase, decrease or do nothing to value.
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/TermValyeMyth3.pdf
Blog Post: http://aswathdamodaran.blogspot.com/2016/11/myth-53-growth-is-good-more-growth-is.html
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