What this is
Assumptions: no losses, no dividends paid by the founders to their own shareholders, and smooth geometric growth into the dated year. Payouts or loss years would mean a higher earnings history and so lower implied growth.
The values
- Creatures constant growth equivalent % per period: 14.7
- Creatures ex TPC dividends 34pct: 15.4%
- Creatures linear ramp cumulative against retained earnings: 48,398 to 29,275
- Game Freak constant growth equivalent % per period: 19.4
- Game Freak linear ramp cumulative against retained earnings: 21,287 to 9,974
Some detail is too fine to show here; it is kept in the trainer’s notes.
Where it comes from
Our calculation from other figures in the trainer’s notes.
Show the working
- solve sum_{i=0}^{24} 3,871.855/(1+g)^i = 29,274.709 → g = 14.67%
- on 29,274.709−1,043 → 15.38%
- linear ramp 25 × 3,871.855/2 = 48,398 > 29,275
- Game Freak: sum_{i=0}^{25} 1,637.495/(1+g)^i = 9,973.522 → g = 19.41%
- ramp 26 × 1,637.495/2 = 21,287 > 9,974