Growth Vs Value Stock Rate Sensitivity Explorer

Growth Present Value (PV)

1428.5

Post-shock discounted cash flows & terminal premium

Value Present Value (PV)

892.4

Front-loaded low-duration cash flow streams

Spread Ratio (Growth / Value)

1.6

Relative valuation multiple advantage

Reinvestment Yield Buffer

6.85%

Growth Attractive (Rate Buffer Active)

Discounted Cash Flow Trajectory & Horizon Curves

Annual discounted cash flows comparing high-CAGR growth vs near-term cash generation under current interest rate shock.

Valuation Metrics & Mechanics

Effective Discount Rate (r) 5.25%

Growth Terminal Premium Share 70.1%

Value Front-Loaded Yield 5.9%

Equity Hurdle Spread +685 bps

Valuation Resilience Verdict GROWTH BUFFER ACTIVE

Why Growth Stays Attractive As Rates Rise

Conventional textbook finance dictates that long-duration assets suffer most when discount rates spike. However, when reinvestment return (14.5% CAGR) dramatically exceeds the marginal cost of capital (5.25%), the compound organic expansion easily outpaces discount rate drag.

The valuation explorer discounts modeled cash flows and assigns terminal ratios

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Read the explanation

The source discounts each entered-model cash flow by one plus safe discount rate raised to its year. Illustrative one-year cash flow one hundred at five and ten percent becomes about ninety-five point two four and ninety point nine one. Bars share four pixels per present-value unit. Safe rate has a point five percent minimum. These are hypothetical model calculations, not current valuations or investment advice. The source assigns value terminal multiple as growth terminal multiple times point six five. Growth multiples ten and twenty therefore assign six point five and thirteen. Bars share twenty-five pixels per multiple unit. This ratio is a source assumption rather than verified company valuation evidence. The source reinvestment buffer is growth CAGR minus risk-free rate, rate delta and fixed two point four percentage points. Hypothetical growth twelve percent and zero rate delta with risk-free four and six gives five point six and three point six percentage points. Bars share sixty pixels per point. Assigned verdict thresholds and article labels do not verify market attractiveness. Full actual JSON/reset, drawing buffers and responsive first-footer preservation remain checked.