Respuesta :
Learning how to evaluate a stock is one of the most crucial skills an investor can acquire. However, it can be very difficult, particularly when it comes to equities with supernormal growth rates. These equities have rapid growth over a long time—say, let's a year or more—and for an extended length of time.
However, given the dynamic nature of markets and businesses, many investing formulas are a bit too simple. Sometimes you can't employ a consistent growth rate when dealing with a growing organization. You must be able to determine value in these situations using both the company's early, high growth years and its later, lower consistent growth years. If you don't receive the right value, you could end up losing your shirt.
Most frequently, the supernormal growth model is tested on finance exams or more difficult investment certificate tests. Its foundation is the discounting of cash flows. The supernormal growth model is used to determine the value of a stock whose predicted future dividend growth rate is higher than average. It is anticipated that the dividend would return to normal with consistent growth following this supernormal growth.
The supernormal growth model will be explained in three steps:
- Discount model for dividends (no growth in dividend payments)
- Model for dividend growth with steady growth (Gordon Growth Model)
- Discounting of dividends with supernormal growth
To learn more about dividend from the given link.
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