Please explain the calculation you have done as i did thru excel in a complex process and correct me if i have calculated wrong. Thanks in advance for helping me in the journey of financial independence.
One more doubt piqued in my head while going through this amazing Fragility Score Card. Are there any particular sectors that I should be aware of where this Score Card cant be applied.
The score card wont work for Financial services company which are into lending as normal financial ratios dont work for the sector. However, I tried explaining about the sector in my earlier post https://www.budgetiger.in/p/the-fall-of-svb-bank-signature-bank
1.5% is a round off number. To put it in simple terms without compounding effect, 1.5% multiplied by 10 times (for 10 years) is 15% which means 1.15 times our present investment in 10 years. Hope this clarifies the doubt.
Projected market cap is 55500 in 2033
From 2023, market cap is 49100
Given cagr is 1.5, my value is 1.23
From 2020, market cap is 190000
Given cagr is 12, my value is 8.52
Please explain the calculation you have done as i did thru excel in a complex process and correct me if i have calculated wrong. Thanks in advance for helping me in the journey of financial independence.
1.5% cagr for 10 years is 1.16 times. 1.5% is a rounding of %. 12% cagr for 10 years is 3.10 times.
Sir please give formula of how you calculate this or what if it is 4% and 8% cagr will make the capital
Formula in excel is Power(1+cagr,no of years). For example Power(1.12,10) for 12% cagr for 10 years.
Perfect. Thanks a lot sir.
One more doubt piqued in my head while going through this amazing Fragility Score Card. Are there any particular sectors that I should be aware of where this Score Card cant be applied.
The score card wont work for Financial services company which are into lending as normal financial ratios dont work for the sector. However, I tried explaining about the sector in my earlier post https://www.budgetiger.in/p/the-fall-of-svb-bank-signature-bank
Thanks for the clarification Ramachandra ☺️ Will definitely give this thread a read ✨
Hi Ramachandra 👋
I was trying to wrap my head around the calculation in the following sentence
"Projected Mrkt Cap by present Mrkt Cap is 1.13 times which implies a CAGR of hardly 1.5% on our investment"
Can you please explain how 1.5% CAGR was arrived at?
Thanks in advance
1.5% is a round off number. To put it in simple terms without compounding effect, 1.5% multiplied by 10 times (for 10 years) is 15% which means 1.15 times our present investment in 10 years. Hope this clarifies the doubt.
Thanks for the explanation 🤝