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  • Valuation

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    RohitSingh
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    Growth companies are expected to increase their earnings per share (EPS) over time at a certain growth rate. EPS represents the return on investment from the profits a company retains after paying dividends to shareholders. It is assumed that a growth company's EPS will rise each year as the company reinvests its retained earnings into initiatives that generate higher profits.

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    Growth companies are expected to increase their earnings per share (EPS) over time at a certain growth rate. EPS represents the return on investment from the profits a company retains after paying dividends to shareholders. It is assumed that a growth company's EPS will rise each year as the company reinvests its retained earnings into initiatives that generate higher profits.

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    © All Rights Reserved
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    7 views1 page

    Valuation

    Uploaded by

    RohitSingh
    Growth companies are expected to increase their earnings per share (EPS) over time at a certain growth rate. EPS represents the return on investment from the profits a company retains after paying dividends to shareholders. It is assumed that a growth company's EPS will rise each year as the company reinvests its retained earnings into initiatives that generate higher profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Assumption

    Growth rate is the rate of increase in EPS


    EPS is the return on investment that the company is generating on the profits retained after
    paying off the dividends

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