## Perpetuity growth rate tesla

Discount Rate, 8.5% - 7.5%, 8.0%. Perpetuity Growth Rate, 3.5% - 4.5%, 4.0%. Fair Value, \$526.84 - \$834.50, \$642.82. Upside, -3.6% - 52.7%, 17.6%

= \$2.06 million. This means that \$100,000 paid into a perpetuity, assuming a 3% rate of growth with an 8% cost of capital, is worth \$2.06 million in 10 years. Now, a person must find the value of that \$2.06 million today. To do this, analysts use another formula referred to as the present value of a perpetuity. Some resources diverted to keeping current market share. Growth rate between 5% and 8%; Mature growth rate; Company is established and allocates a substantial amount of it's resources to protecting its market share, Positive growth rates at this stage mirror the historical inflation rate, between 2% and 3%. There are two principal methods used for calculating terminal value. The perpetuity growth model assumes that the growth rate of free cash flows in the final year of the initial forecast period will continue indefinitely into the future. A positive terminal growth rate implies that the company will grow into perpetuity, whereas a negative terminal growth rate implies the discontinuance of the company’s operations. The terminal growth rates typically range between the historical inflation rate (2%-3%) and the average GDP growth rate (4%-5%) at this stage.

## 30 Jan 2019 The biggest thing underpinning Tesla Inc.'s valuation is the promise of growth. And the biggest head-scratcher to emerge over the course of

View, edit and export model. Select Revenue and EBITDA Forecast (USD in millions) Input Projections: Fiscal Years Ending An example of the present value of a growing perpetuity formula would be an annual cash flow of \$1000 that will continue indefinitely. This cash flow is expected to grow at 5% per year and the required return used for the discount rate is 10%. In the formula, it is a decimal rate, while in our calculator it is a percentage. The payment growth rate cannot exceed the rate of return, or else this model is meaningless. Example. We will receive a perpetuity of \$100 each year. The interest rate at the moment is 2.2% compounded annually. The payment grows by 0.5% each compounding period. = \$2.06 million. This means that \$100,000 paid into a perpetuity, assuming a 3% rate of growth with an 8% cost of capital, is worth \$2.06 million in 10 years. Now, a person must find the value of that \$2.06 million today. To do this, analysts use another formula referred to as the present value of a perpetuity.

### Terminal value based on the Perpetuity Method where growth (g) = 2.5%: \$50,971 Present value of terminal value: \$33,908 So the total value is the sum of the next 5 years cash flows and the terminal value discounted to today, this is known as the Equity Value.

Tesla Inc Quarterly and Annual Revenue, Income, Cash Flow and EPS Growth Rates Comparisons to Auto & Truck Manufacturers Industry, Consumer Discretionary Sector and S&P 500 - CSIMarket View, edit and export model. Select Revenue and EBITDA Forecast (USD in millions) Input Projections: Fiscal Years Ending An example of the present value of a growing perpetuity formula would be an annual cash flow of \$1000 that will continue indefinitely. This cash flow is expected to grow at 5% per year and the required return used for the discount rate is 10%.

### Discount Rate, 8.5% - 7.5%, 8.0%. Perpetuity Growth Rate, 3.5% - 4.5%, 4.0%. Fair Value, \$512.81 - \$858.51, \$642.54. Upside, 15.2% - 92.9%, 44.4%

A positive terminal growth rate implies that the company will grow into perpetuity, whereas a negative terminal growth rate implies the discontinuance of the company’s operations. The terminal growth rates typically range between the historical inflation rate (2%-3%) and the average GDP growth rate (4%-5%) at this stage.

## Discount Rate, 8.5% - 7.5%, 8.0%. Perpetuity Growth Rate, 3.5% - 4.5%, 4.0%. Fair Value, \$526.84 - \$834.50, \$642.82. Upside, -3.6% - 52.7%, 17.6%

Discount Rate, 9.0% - 8.0%, 8.5%. Perpetuity Growth Rate, 3.5% - 4.5%, 4.0%. Fair Value, \$224.29 - \$373.13, \$282.21. Upside, -2.3% - 62.5%, 22.9%

Discount Rate, 8.5% - 7.5%, 8.0%. Perpetuity Growth Rate, 3.5% - 4.5%, 4.0%. Fair Value, \$526.84 - \$834.50, \$642.82. Upside, -3.6% - 52.7%, 17.6%