the definition of hyper growth

What is “growth”

The basis to predict perpetuity growth rate is typically the combination of the historical inflation rate of 2 to 3% and the historical high growth nations’ GDP growth rate of 5 to 6%. Super nation can control their money supply. Global reserve currency gives power to control world to issuer nation. Due to credit control, leveraged debt will foster national asset price goes up. By combination of property price rise, population growth, productivity exellence and infration, stock price makes 6-7% return historically. This is the benchmark of macro growth.

GR > WACC

if the long-term growth rate surpass weighed avarage capital cost, GR > WACC then there is no comparable opportunity, that investment institution dominant the world after decades.

What is “hyper growth”

Why there is 30%+ BPS and EPS growth company exists even the most advanced growth economy have only 8-10% growth rate? That is because they are utilizing financial arbitrage and leverage. “value”and “time” arbitrage. Buying discounted asset and selling at market price. “leverage” in ecosystem contribute to 2 to 10 times multiple of base growth rate of 6%. It ends to 12% to 60% annual growth. These financial(as well physical) constraints and benchmark is quite typical if net income is over 10 billion USD.

19% growth with $10 billion is the maximum cap

There is no entity that can surpass over 60% growth after $10 billion profit. Maximum record of historical 10-year CAGR is around 19% after 10 billion net income. 19% is the definition of hyper growth of the biggest entity.