Long Term Sustainable Company Growth

The Long Term Sustainable Company Growth worksheet sets the sustainable growth rate for the Income Approach valuation methods.

If you know the growth rate that you want to use, enter it in the first white input cell, the one labeled "Select Sustainable Growth".

If you're not sure of the rate, follow the steps below.

Set the Target Debt to Equity Ratio

In the second white input cell, the one labeled "New Target Debt to Equity Ratio", enter the debt to equity ratio that the subject business should support.

Review the Calculated Growth Rates

Review the calculated growth rates and develop an estimate of a realistic sustainable growth rate for the business.

Set the Sustainable Growth Rate

Enter your best estimate of a realistic sustainable growth rate in the first white input cell, the one labeled "Select Sustainable Growth".