The way you do valuations is using DCF analysis. They do some projection until a final year at which point they treat is as perpetuity with some growth rate. Here is the basic formula PV = FCF&#x2F;(r-g). Where r is discount rate and g is growth rate. As you can see g is huge in the way companies are valued. For example for d=10% and FCF value of $10 million a growth rate of 1% would value the company at 111 million whearas a growth rate of 9% would value it at $1 billion. Almost 10x as much. That is why growth is so important to finance people.