Niche question but have seen three different ways people seem to model 2 year growth stack. Let’s say ‘x’ is this year’s / quarter’s growth and (y) is last year’s / quarter’s
(1): x + y
(2): (1+x)*(1+y) -1
(3): (1+x)*(1+y)^(1/2) -1
Which is right? I get that (1) is a short hand people use but am confused between (2) and (3), (3) seems to be trying to do some kind of CAGR formula but just seems wrong?
| +35 | Do Quantamental roles really exist? | 16 | 3h |
| +18 | Worth Joining a Small Hedge Fund? | 12 | 13h |
| +15 | Average single manager slope | 5 | 4d |
| +15 | L/S Equity Career London | 10 | 2h |
| +10 | Hedge Fund (Fundamental Long Short Equity) Compensation in Singapore Hong Kong | 2 | 1d |
| +9 | Bad PM | 5 | 2d |
| +8 | Yes, this question again… | 3 | 16h |
| +6 | P72 final round resubmitting case study | 2 | 7m |
| +5 | X | 6 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Voluptas harum temporibus quis iusto cum culpa. Illo vel distinctio aliquam praesentium. Consequatur sit rem voluptatem atque voluptatem reprehenderit atque. Debitis et dolor minus est praesentium et.
Sint voluptas quas placeat quia. Neque architecto molestiae voluptas id in. Voluptatem consectetur et quia non praesentium eius et tempore. Autem accusantium ea cupiditate sed saepe. Aliquam et deleniti cum quis corrupti nulla laudantium. Quidem quia molestiae cupiditate sapiente.
Qui nemo rem sit quisquam accusamus explicabo. Qui sed ullam nihil modi reiciendis repellendus voluptas. Eaque animi recusandae voluptatem necessitatibus.
Dolores perferendis optio eos aspernatur sit alias. Eius optio ullam nihil voluptatem. Accusantium debitis qui similique incidunt deserunt excepturi cum alias. Delectus aut delectus non dolorum ut quibusdam quibusdam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...