growth rate/retention rate

April 28, 2020

Q & A › growth rate/retention rate
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Navin Sukilan asked 3 years ago

can you please explain how do i do this/
 

1 Answers
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KCLau Staff answered 3 years ago

Refer this training:

Estimating Growth Rate

KCLau Staff replied 3 years ago

Can elaborate more about what the 1% and 4% you are referring to? I couldn’t reply you without knowing that.

Jayson Leong replied 3 years ago

Noted thanks. May I know if the 1% and 4% guess figure inserted each in both of the formulas considered common standard to follow or is there a guide on this?

KCLau Staff replied 3 years ago

There are three methods to estimate the growth rate. But those three will come up with 3 different result. Use the lowest for more conservative intrinsic value calculation.

Jayson Leong replied 3 years ago

Hi KC, I notice in notes above that the growth rate result of method 2 (Compounded Annual Growth Rate (CAGR) of net profit) 0.62% is quite far off compared to method 1 and 3 which is around 4%. Please correct me if I am wrong. Thanks