{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"25 - Long Term Growth Rate Assumptions: How to Calibrate using SEC 10k Disclosures","description":"Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a review. Your feedback helps me to improve the podcast and grow the show's audience.&amp;nbsp; Support the Podcast on Patreon This is a podcast supported by listeners like you. If you\u2019d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at&amp;nbsp;DIYInvesting.org\/Patron. You can find out more information by listening to episode 11 of this podcast.&amp;nbsp; Long-Term Growth Rate Assumptions - Show Outline The full show notes for this episode are available at&amp;nbsp;https:\/\/www.diyinvesting.org\/Episode25 What is a long-term growth rate assumption:  A key component of a discounted cash flow calculation. (Along with Discount Rate [Ep.23] and Owner's Earnings[Ep.26]) How much growth a company can expect in its earnings over an infinite time horizon.&amp;nbsp;  How you can make long-term growth rate assumptions  Bounds:&amp;nbsp;  0% lower bound (no growth) 5%-6% upper bound (nominal GDP growth rate)   Key components:  Inflation Population Growth Productivity Growth   Don't assume that a company can grow faster than the economy in the long-term.  How to calibrate long-term growth rate assumptions based on management's regulatory disclosures  Example: Omnicom (OMC) Using management's forecasts of 4% long-term growth rates, I lowered my growth forecast from 5% (matching nominal GDP growth) to match the 4% forecast by management. This lowered my calculated intrinsic value by 13% for Omnicom stock.  Read the full Omnicom Intrinsic Value Report ($10\/month - Patron Exclusive Benefit) [Become a Patron here]    References:  Omnicom's 2018 10k - Required Management Disclosures (pg. 11)  ","author_name":"The DIY Investing Podcast","author_url":"https:\/\/www.diyinvesting.org","html":"<iframe title=\"Libsyn Player\" style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/9462110\/height\/90\/theme\/custom\/thumbnail\/yes\/direction\/forward\/render-playlist\/no\/custom-color\/1b07f0\/\" height=\"90\" width=\"600\" scrolling=\"no\"  allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen><\/iframe>","thumbnail_url":"https:\/\/assets.libsyn.com\/secure\/content\/40325186"}