Long term cash flow growth rate calculation
This leads to a growth rate of 30.7%. In another example, the train product-maker Westinghouse Air Brake Technologies Corp. ( WAB) delivered a median ROE of 20.3% and a median retention ratio of 97.8% over the past 10 years, giving us a growth rate of 19.9%. L ong-term G rowth Rat e – This is a term financial analysts use to predict the rate at which a company will grow in the long-run. Perpetuity Growth Rate (Terminal Growth Rate) – Since horizon value is calculated by applying a constant annual growth rate to the cash flow of the forecast period, the implied perpetuity growth rate is how much