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Terminal Value Myth 4: Negative Growth Rates are impossible
Published 5 days ago
Description
In this session, I confront the myth that you cannot do a DCF with negative growth rates and that the perpetual growth model will not work if you have negative growth. In fact, negative growth is more common among companies than we think and we need to use negative growth in our projections more frequently.
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/TermValyeMyth14.pdf
Blog Post: http://aswathdamodaran.blogspot.com/2016/11/myth-54-negative-growth-rates-forever.html
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