Navigating the Transition: Modeling Perpetual Growth in DCF Valuations

Imagine you are drafting an initiation report for a burgeoning Indian SaaS company. You have meticulously projected revenue growth at 25% for the next five years, reflecting its expansion into Tier-2 cities and product...

Terminal Value: Choosing Between Exit Multiples and Gordon Growth

Picture yourself in a research meeting at a Mumbai-based brokerage, defending your DCF model for a mid-cap IT firm. You have projected cash flows for the next five years, but the terminal value—which often accounts for...

Understanding Capital Structure: Beyond the Modigliani-Miller Theorem

Imagine you are drafting an initiation report for a manufacturing firm in the Nifty 500. You observe that management is aggressively replacing equity with long-term debt to boost their Return on Equity (ROE). Your mentor...