Financial Information Analysis
Growth rate is the measure of the increase in value or quantity of an asset or investment over a specified period, expressed as a percentage. In financial contexts, particularly related to valuation methods like discounted cash flow (DCF), it reflects how much cash flows are expected to grow in the future, which significantly impacts the valuation of an investment. Understanding growth rates is crucial as they help investors assess the potential return on their investments and determine the future cash flows that will be discounted back to present value.
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