When I do Estimating Growth Rate and my results are as follows:
a. CAGR of Net Profit = 24.55%
b. CAGR of Average Profit = 20.67%
c. ROE x Retention Rate = 9.87%
Q1. Is it possible for “c. ROE x Retention Rate” to be so much lower?
Q2. Logically, I should use the lowest % to calculate the Intrinsic Value?