Unlocking the Value of High-Growth Businesses: A Game-Changer in Forecasting
The article discusses how to value a high-growth business by forecasting its future performance and calculating its terminal value. To deal with uncertainty, analysts create different scenarios to show a range of possible outcomes. When valuing a high-growth business, forecasts should be extended until growth stabilizes. The terminal value should be based on consistent cash flow and growth rates. It's important to consider various scenarios to understand how they can affect the business's value.