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by justchilly
2709 days ago
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The assumptions in your screen capture are dramatically more aggressive than any company in history. E.g. You are showing 60% yoy revenue growth 10 years in. For comparison: Google in year 10: 31%. Amazon in year 10: 23%. Dropbox in year 10: 27%.
If these kinds of growth rates were possible, there would likely be much higher discount rates to go with them.
Lots of investors do long term DCFs like this (and almost all update 5-year models on a rolling basis).They're just not as useful as a shorter term model given lack of visibility that far into the future and likelyhood of having to return funds well before then. |
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Ahrefs recently announced a similar growth rate: https://medium.com/swlh/how-we-achieve-65-yoy-growth-by-igno...