The Two Stage Growth Model
Estimate cash flows for two different growth stages.Stage 1: dividends grow at above-average rates.Stage 2: dividends grow at the industry average rate.Value = PV(stage 1) + PV(stage 2)
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The Two Stage Growth Model
Estimate cash flows for two different growth stages.Stage 1: dividends grow at above-average rates.Stage 2: dividends grow at the industry average rate.Value = PV(stage 1) + PV(stage 2)