Terminal Value Myth 3: Growth is good, more growth is better!

In the perpetual growth model, increasing growth while holding all else constant will always increase value. That is the problem. If you follow consistency requirements, increasing growth will affect your cash flows and the effect of growth becomes ambiguous. It can increase, decrease or do nothing to value.

[EverlastingPL]

Mr Aswath, I'm probably one of the very few people in the world who actually makes notes out these videos. Please, please can you decrease a little bit the area where you are visible?
I love watching you, it makes it more like real life lecture, but I am missing some words from your presentation :-)

[CharbelGereige]

Very useful!
Is there a way to show the presentation screen only? at some points the camera view is hiding important information on the presentation.

[zhuangcorp]

Hi Professor,
Some people separate growth into a "active" growth that requires reinvestment and a "passive" growth that is basically free growth. The "passive" growth comes from increasing GDP, population, spending, etc. What do you think about this practice?

[dodgingdurangos]

Is there a way to calculate a company's utilization or capacity rate? If they aren't operating at full capacity or full capacity revenues, but still growing their earnings, they don't have to reinvest much, right?