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Financial Terms | |
Transition phase |
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Definition of Transition phaseTransition phaseA phase of development in which the company's earnings begin to mature and decelerate to
Related Terms:Three-phase DDMA version of the dividend discount model which applies a different expected dividend Growth phaseA phase of development in which a company experiences rapid earnings growth as it produces Maturity phaseA phase of company development in which earnings continue to grow at the rate of the steady-state phasethe point at which the learning curve becomes flat and only minimal improvements in performance are achieved constant-growth dividend discount modelVersion of the dividend discount model in which dividends grow at a constant rate. Constant-growth modelAlso called the Gordon-Shapiro model, an application of the dividend discount Critical Growth PeriodsTimes in a company's history when growth is essential and without which survival of the business might be in jeopardy. ![]() Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the Dividend discount model (DDM)A model for valuing the common stock of a company, based on the dividend growth methoda method of computing the cost Dividend growth modelA model wherein dividends are assumed to be at a constant rate in perpetuity. growth fundsMutual funds that seek long-term capital growth. This type of fund invests primarily in equity securities. Growth managerA money manager who seeks to buy stocks that are typically selling at relatively high P/E Growth opportunityOpportunity to invest in profitable projects. growth ratean estimate of the increase expected in dividends Growth ratesCompound annual growth rate for the number of full fiscal years shown. If there is a negative ![]() Growth stockCommon stock of a company that has an opportunity to invest money and earn more than the Internal growth rateMaximum rate a firm can expand without outside source of funding. growth generated internal growth rateMaximum rate of growth without external financing. Net present value of growth opportunitiesA model valuing a firm in which net present value of new Present value of growth opportunities (NPV)Net present value of investments the firm is expected to make present value of growth opportunities (PVGO)Net present value of a firm’s future investments. Simple compound growth methodA method of calculating the growth rate by relating the terminal value to Sustainable growth rateMaximum rate of growth a firm can sustain without increasing financial leverage. sustainable growth rateSteady rate at which a firm can grow without changing leverage; plowback ratio × return on equity. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |