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As a company moves through its industry lifecycle, toward maturity, how is this most likely to affect an equity analyst's perception of its growth rate for equity valuation?
Suggested Answer: D
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11 comments · newest first
KI
Kirk
1 year ago
Definitely decreases, that's standard valuation practice.
AR
Arthur
1 year ago
Wait, are we sure it always decreases? Seems too simplistic.
RA
Raylene
1 year ago
I think it could actually increase growth expectations.
ME
Melodie
1 year ago
Totally agree, maturity means slower growth!
PE
Percy
1 year ago
Analysts usually lower growth expectations as companies mature.
CH
Charolette
1 year ago
I thought analysts might actually increase growth expectations in some cases, but now I’m second-guessing myself. Wasn’t there a similar question on our last quiz?
TE
Tesha
1 year ago
I feel like we went over this in class, and it seems like as companies mature, the growth rate expectations drop. So, I’d lean towards D.
JA
Jarod
1 year ago
I’m a bit unsure, but I think we practiced a question where analysts adjust growth rates based on lifecycle stages. Maybe it’s option D?
RA
Raylene
1 year ago
I remember discussing how companies in the maturity phase typically see slower growth, so I think the expected growth rate might decrease.
SI
Simona
1 year ago
This seems like a good opportunity to demonstrate my Kubernetes administration skills. I'll be sure to double-check my work to ensure I've met all the requirements.
TE
Teddy
1 year ago
I'm a bit confused about the difference between creating an application seed and just synchronizing the new PDB1 with HR_ROOT. I'll need to review those options more closely.