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Originally Posted by rivercitybirdie
+1... that's what i see too.... i think his example needs a few more details to be meaningful but yes that's how i read it.
30% immediate then 10% FCF growth forever? that's pretty good. doesn't it yield infinite stock price?
This is an example from the book 'The Dhando Investor'. I read it but never noticed this before, not sure if I'm being dumb or it's just a mistake.
"10% FCF growth thereafter" refers to year 6 to year 10 not forever. In the example the company is sold in year 10 for 15x FCF.
