GREY:XEBEQ - Post by User
Comment by
dm27427on May 17, 2020 7:29am
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Post# 31039294
RE:Lets make it simple
RE:Lets make it simpleThe law of large numbers. While it is theoretically possible for a company to grow at a 127% straight line rate annually for five years, it is more likely that its growth rate will attenuate ("flatten the curve"). Consider for a moment if you think realistically that the share price will be $195 in five years and market cap 16.4 billion? That's what 127% compound annual growth would result in.
Let's model a more realistic (and TBH completely abitrary) scenario, where from a starting point of 127% YOY growth, the growth rate drops by 30% annually. Still far from shabby. That puts the share price at $42 after five years, market cap at 3.4 billion and the initial investment of $5000 at $65,000; a 15-bagger. I'll take that any day.