DCF Growth rate on Revenue

I'm currently doing a DCF analysis, but I'm stuck on the future growth rate part of the analysis. I was told to use the industry growth rate as the growth rate for the company I'm doing the analysis for. Also, that I should be incorporating inflation rate as well? My industry is Clothing/Apparel. What are some reliable sources that I can use to find the industry growth rate? Furthermore, should I be averaging the past 5-10 years' growth rates and using what I get as the growth rate for the next 5 years?

I've looked at CSIMarket and Statista , but they both give me different growth rates for the Apparel industry. Thank you.

2 Comments
 

Hi teachmepls0101, whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:

  • Free Cash Flow to Firm vs. Free Cash Flow to Equity Growth Rates difficult to assess the growth rate going forward. Definition of Unlevered Free Cash Flow? Typically, when ... performing a discounted cash flow analysis on levered free cash flow, you are examining the cash flow ... someon explain why? What is Free Cash Flow
  • Why can't the growth rate be higher than the discount rate? = Last Year Free Cash Flow x ((1 + Terminal Growth Rate) / (WACC- Terminal Growth Rate)) Exit Multiple: ... (ex: LBO) For more information on how to find your growth rate and discount rate, check out these ... Why can't the discount rate be lower than the growth
  • Investment Banking Interview: Walk me through a DCF Discounted Cash Flow Analysis? The DCF is based on projections of the analyst performing the analysis and ... A DCF is a discounted cash flow analysis which is an intrinsic valuation method. This method of ... request. Project out cash flows for 5- 10 years depending on the stability of the c
  • DCF Perpetuity Growth Rate What are you guys currently using for the perpetuity growth rate in the DCF? I know it typically ... or is it even lower? Perpetuity Growth Rate DCF From Macabus The perpetuity growth rate is typically ... implied growth rate when using multiples to make sure it's reasonable. Read More About This Topic on
  • 3 statement model & valuation- cash flows & valuation increase when revenue growth decreases?? opposed to 5% or 20% etc- cash flows actually increase? when the business has high revenue growth the cash ... % revenue, D&A is % Fixed assets FY-1. Help please! 5Y cash flows at 5% revenue growth- 1509, 1300, 1023, ... 770, 543. 5Y cash flows at-5% revenue growt
  • a question about terminal growth rate, discount rate and property evaluation and the anticipated cash flow in year 6 is $175,000. Your terminal growth rate is 2% and your discount ... help me with this question??? Thank you terminal growth rate discount rate Cash Flow the sum of your ... discounted cash flows ...
  • Valuation under Discounted cash flow I am little confused on DCF Valuation. I did a valuation of a cash inflow for 2 years and terminal ... value cash flow at the end of 2nd year. I arrived at "x" value. Now by just increasing ... forecast period from 2 years to 5 years (assuming growth at equal to Cost of capital) and keeping all other ...
  • EBITDA vs. Operating Cash Flow vs. Free Cash Flow However, the remainder of the revenue shows up in the Operating Section of the Cash Flow Statement. Compare ... "hotseat" during the technical part of the interview". Distinctions between EBITDA, Operating Cash Flow ... and Free Cash Flow Noticed EBITDA has been a common source of confusion. I hope this helps anyone with ...
  • More suggestions...

You're welcome.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

Quo tempora sed quia voluptas. Sed aspernatur consectetur et itaque recusandae qui.

Minima et molestiae earum et veritatis ad hic. Ut blanditiis fugiat animi qui tenetur non.

Dolores fugiat omnis et occaecati veritatis quaerat eligendi. Exercitationem unde sed commodi voluptatibus animi.

============================================================= Pursue Excellence, and Success will chase you, pants down.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.8%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • Morgan Stanley 05 98.3%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (44) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (78) $151
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
DrApeman's picture
DrApeman
98.9
8
dosk17's picture
dosk17
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”