Session 9: Growth Rates

(The first 35 minutes of class were taken up by the first quiz and that time was not recorded. The rest of the class was recorded.)
In the session, which occurred after the quiz i, we started on our assessment of growth rates, starting with historical growth rates, before looking at analysts estimates of growth and why they do not carry more predictive power (given that analysts often are immersed in company-specific knowledge and have access to management). We then looked at tying growth to two fundamental questions: (1) how much companies reinvest and (2) how well. The way we measure these can vary depending on whether you look at earnings per share, net income or operating income
Slides: www.stern.nyu....
Post class test: www.stern.nyu....
Post class test solution: www.stern.nyu....

[@quant-trader-010]

This is gold!

[@mustavogaia2655]

gold! Jerry

[@Ashwantpakhrin]

Reading the same at CFA L2... Didn't know CFA would teach me such...

[@karansharda2072]

Same here

[@roy12386]

starts at 2:32

[@sumanthasaha61]

Hello Professor, I am valuing an Indian Private company about to go Public. I was calculating the country risk premium for the ERP, one of the methods you suggested was to adjust the default spread by (S.D. of Equity/ S.D. of Country bond). I am confused about how to calculate the deviation of T. Bond. Do I have to calculate the annualized S.D. of the Historical Yields or calculate S.D. from the returns of a bond Index?

[@kirangadge911]

I divided standard deviation of total returns for "S&P Emerging BMI" by "S&P Global Emerging Sovereign Inflation-Linked Bond Index" from spglobal to get 1.35

[@sumanthasaha61]

@@kirangadge911 Thanks