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Learning to Invest / Reading Financial Statements


Subject:  Valuing a stock (Nonconstant Growth Model) Date:  6/10/2000  4:00 PM
Author:  thalseth Number:  1130 of 3984

To value a stock using the nonconstant growth model, one needs to know the growth rates for earnings and dividends for varying periods in the future. I typically only see one number for long term growth rate on the web sites. For a new company, this rate should start out high and eventually stablize as the company matures. Where is that information available so as to be able to apply the model. Also, one needs the stockholders' requried rate of return for that investment. Where do you find that information? I know how to apply the model, but I don't know where to find the appropriate information. Please respond with specific locations, because I have looked at various investing web sites to no avail.


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