13 July, 2007

Long Term Growth Rates of Nasdaq 100 Companies

Interesting list of companies that make up the Nasdaq 100 and their projected long term growth rates. Link provided below.


Those investors looking for companies with future growth propects, this I believe is a great starting point for additional research.

Of note: Google (GOOG) ranks 6th, Akamai (AKAM) 7th, Yahoo (YHOO) 12th, Apple (AAPL) 22nd


Roger Hjelmstadstuen said...

Hello Chris.
So is everyone expecting Apple to grow 23% a year for the next 3-5 years? Just want to get it right.
Thanks in advance.

Chris Krasowski said...

These numbers are a consensus estimate from analysts which cover the companies involved.

Basically analyst growth opinions on the individual stocks are pooled and averaged.

Apple has around 20 analysts which cover the company, so on average they believe the company can grow over 20% annually over the next 3-5 years.

So you are right, except "everyone" refers to only those professionals who cover the specific companies.

Roger Hjelmstadstuen said...

Thanks for a the fast and easy answer. Nice to see people that are looking at the basic stuff.
So 100 becomes 249 in 5 years if they grow 20% a year. God to know when it comes to both top and bottom line. Look like apple have a great chance to be a good investment the next years. Nice blogg!

Chris Krasowski said...

These are growth rates of revenue, not necessarily stock price. Since this growth is averaged annually of the 5 years it does not mean that Apple can carry the same P/E multiple ove those years. It's the norm of the stock market that companies that grow quickly command higher multiples and as growth slows their multiples contract, the hope is that the earnings grow higher and quicker than the P/E ratio contraction so hence the stock can go up year after year. A company like Apple though, certainly has a great chance over being a very successful investment down the line.