Thank you for the clear presentation, very well explained. I have 2 questions. If I play with this formula, I face an issue when the growth is above the cost of capital. Example of drivers, 8% growth / ROIC of 11% and cost of capital 6%. I have a second question, can I calculate the Reinvestment rate as (growth divided by ROIC).
Thank you, Sir, a difficult topic so wonderfully explained.
this is the best finance/valuation presentation on UA-cam
I agree!
Thank You so much for such a wonderful session on key value drivers and value creation........!!
Thanks, wonderful knowledge sharing
Thank you for the clear presentation, very well explained. I have 2 questions. If I play with this formula, I face an issue when the growth is above the cost of capital. Example of drivers, 8% growth / ROIC of 11% and cost of capital 6%. I have a second question, can I calculate the Reinvestment rate as (growth divided by ROIC).
In a perpetuity g cannot be higher than the cost of capital. That is just math and a limitation. And if g = ROIC x Investment Rate then IR = g / ROIC
such wonderful knowledge. thank you for sharing
Thank you that was so usefull for me as a finance student 😩