Wednesday, March 19, 2008

What's up, g?

You may recall from school (at least when you weren't down at the bar nearest campus) that when valuing a company using a discounted cash flow technique, the value for g (earnings growth, that is) was quite significant in the company's valuation. What creates the g at your company? Does that product, unit, or person have what it needs? If they are being held back, why?

Know your business.

Next up: cash.

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