
90 The Financial Times Guide to Corporate Valuation
involve having to move directly from an extremely high growth rate to
the much lower steady-state growth. This rarely reflects the reality of the
high-growth company as it may experience extreme growth for several
years, then a period of higher than long-term growth for another few years
and finally a period during which growth is constant at a given long-term
growth rate. Consequently, the estimations can instead be divided into
three periods.
When using a third, middle period, the explicit value period is, as long
as it is fruitful to do the calculations explicitly, subject to accuracy ...