Anyone, please explain how to calculate growth rate and discount rate while calculating share price using the free cash flow model? What all parameters do we need to check while selecting a discount rate??
You should check out this module on Varsity, will help you.
Thank you so much, sir, but I have read all the modules in Fundamental analysis, but still, a bit confused as to how Karthik sir chose the growth rate of Amara raja ltd. Are the companies in a midcap range have a growth rate of 18-20% and large-cap have about 15-18%. Is this the criteria for choosing a growth rate, or do we need to do some sort of calculations??
Kindly help??