Advanced Growth Model Reduces The Risk of Overvaluing From ‘Constant WACC’ Assumptions

Business Valuation UpdateVol. 15 No. 6
June 2009


“Constant WACC” is an accepted assumption in many business valuations; though it is far from reality for most businesses, or particularly for leveraged transactions. Certainly, the Gordon Growth Model (GGM) is based on constant WACC (and growth) assumptio ...