The reinvestment rate measures how much a firm is plowing back to generate future growth. So clearly the reinvestment rate matters for growth. How does the reinvestment rate correlate with growth and therefore with the value of a business? We explore how the reinvestment rate impacts the value of a business in DCF valuation in this article in the specific condition that the business is NOT profitable.

How does the reinvestment rate impact the value of a business in DCF valuation when the business is NOT profitable?

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