Sustainable Growth Rate - Meaning, Formula, Calculation & Interpretations

[@oyerohabib]

Thank you for taking your time throughout this series to provide value. This will really go a long way in helping me in my finance exploration.

[@wallstreetmojo]

Appreciate your feedback, more content coming soon!

[@anands4525]

I watched whole series of videos. Got lot of knowledge. Thanks a lot Guruji...

[@arturogallobalma4621]

Ma nel caso che la società non dia dividendo, poiché l'utile è interamente lasciato in azienda, come calcolarlo?

[@mansijaiswal4158]

Thanks for the great video series I saw it all and it came out to be very worthful for me... Thank you

[@andrewpasto6651]

Thank you for this wonderful series. This really helps. I just query are you also going to upload a video on how did you forecast the numbers for future years ? If not could we please request the same ? Thanks

[@alanmajo5344]

I was also wondering if you could make a video for this. Thanks

[@AR-kg2xz]

Rather well articulated series, thoroughly enjoyed the detailing and your repetitions on formulas/basics - immensely helped me. All the best with future videos and your career. Thank you Dheeraj.

[@talanup]

not able to download the excel

[@nishamali8237]

Really amazing series.🤩🤩

[@Alessandro-c5m]

Hey WallstreetMojo, people, i have two questions for all of you: 1) looking at this practical example we can say that an hypothetical performing of the dividend discount model (DDM) will be misleading for the Colgate case, since a sustainable dividend growth at 200/300 rate is not realistic. Do you all agree with that? 2) secondly, someone of you can explain me the mathematical reason why we should multiply the ROE for the retention rate? I mean, is there any demonstration of that?

[@PoojaSingh-rv3cs]

@user-jc6dh6ee9w for the point 2 i can explain :- We multiple the ROE to Retention Ratio because if you see SGR = Retention Ratio*ROE Retention Ration = Retained Earning/Net Income ROE = Net Income/Shareholder's fund at the beginning SGR = (Retained Earning/Net Income)*(Net Income/Shareholder's fund at the beginning) SGR = Retained Earning/Shareholder's fund at the beginning So, we are calculating the growth of the company based on the retained earning infuse in the business. The important part missed in this tutorial is that to Calculate SGR we assume that all the ratio such as Debt to Equity ration, Retention Ratio, Asset turnover ratio will be constant each year.

[@Zahid-de9jw]

Well understood sir

[@wallstreetmojo]

Thank You

[@sabed7]

Nicely explained

[@marf982b]

Finished... Thx

[@h.t.7310]

Thank you so much!

[@wallstreetmojo]

Appreciate your feedback, more content coming soon!

[@omjd752]

👍👍