Uploaded August 2024 | Updated September 2026, 1 week ago
Session Description: In this session, I examine the big questions involved in valuing high-growth firms, with established business models, but where the key question becomes one of whether and if yes, how much, a firm with strong past growth can continue to grow. I also look at pricing high growth firms, where the key difference to control for is in expected growth.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch11.pdf
Exercise:
For the high growth company in your peer group:
a. Given what you have learned about your company, what is your valuation story?
b. Does your valuation story pass the 3P test?
c. How does your valuation story play out in your valuation inputs (revenue growth, margins, reinvestment, and risk)?
d. Given these valuation inputs, what is your valuation for the company?
e. How uncertain are you about this valuation? How do you deal with this uncertainty?
f. What is the value that growth is adding (or destroying) in your company?
Session Description: In this session, I examine the big questions involved in valuing high-growth firms, with established business models, but where the key question becomes one of whether and if yes, how much, a firm with strong past growth can continue to grow. I also look at pricing high growth firms, where the key difference to control for is in expected growth.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch11.pdf
Exercise:
For the high growth company in your peer group:
a. Given what you have learned about your company, what is your valuation story?
b. Does your valuation story pass the 3P test?
c. How does your valuation story play out in your valuation inputs (revenue growth, margins, reinvestment, and risk)?
d. Given these valuation inputs, what is your valuation for the company?
e. How uncertain are you about this valuation? How do you deal with this uncertainty?
f. What is the value that growth is adding (or destroying) in your company?
