The two-stage growth model allows for two stages of growth - an initial phase where
the growth rate is not a stable growth rate and a subsequent steady state where the growth
rate is stable and is expected to remain so for the long term. While, in most cases, the
growth rate during the initial phase is higher than the stable growth rate, the model can be
adapted to value companies that are expected to post low or even negative growth rates for a
few years and then revert back to stable growth