I’m working on a series of posts about analyzing growing companies. I just published Part 6 of the series. I would have cross-posted it here, but the post contains a number of screenshots and figures that cannot be included in TMF board posts. Therefore, I’m providing a link to the post here:
https://gauchorico.com/growth-stock-analysis-part-6/
Part 6 is all about examining, tracking, and analyzing a company for evidence of scaling and realization of operating leverage. This is a path that successful hyper growth companies must follow if they are to reach scale, profitability, and excess Free Cash Flow (FCF). Achieving profitability enables a company to self-fund its own future growth (i.e. no more dilutive rounds of financing required). Excess FCF enables the company to return capital to investors.
GR