I’m a little disappointed that nobody ventured a guess for a company that might grow fair value at a high rate over the next five or 25 years. Maybe if I show the list of 100 companies, then someone might venture a guess. Note that the list is not random; it came from various sources.
How about something like TROW? They’re very profitable, 35% ROE with no debt. Could TROW grow fair value at 22% for the next 25 years? It depends primarily, I think, on whether they have to cut fees in order to maintain assets under management.
company… 5-year annualized FV growth… P/FV… 5-year average dividend yield… ttm dividend yield… FV growth plus ttm dividend yield
NVDA 83 1.52 0.25 0.06 83
AMD 79 0.88 0.00 0.00 79
TSM 43 0.84 2.78 1.52 45
AMAT 42 1.11 1.20 0.62 43
MSFT 40 0.97 1.40 0.73 41
INTU 39 1.26 0.73 0.45 39
AMZN 35 0.81 0.00 0.00 35
JD 34 0.62 0.00 0.00 34
GOOG 33 0.81 0.00 0.00 33
AAPL 30 1.39 1.18 0.50 31
MCO 30 1.13 0.93 0.67 31
ADSK 28 1.35 0.00 0.00 28
TCEHY 28 0.58 0.24 0.36 28
BBY 26 0.88 2.34 2.73 29
COST 26 1.27 0.91 0.57 27
MA 25 1.05 0.52 0.49 25
FB 24 1.05 0.00 0.00 24
UNH 24 1.31 1.39 1.22 25
CAT 22 1.15 2.51 1.91 24
TROW 22 0.93 2.97 4.32 26
DE 21 1.27 1.62 1.03 22
PGR 21 1.30 2.47 1.65 23
APD 20 0.89 2.22 2.02 22
JKHY 20 1.05 1.08 1.08 21
PAYX 20 1.24 2.91 2.02 22
TGT 19 1.37 2.71 1.37 20
SWKS 18 0.74 1.40 1.37 19
FDS 17 1.69 1.03 0.73 18
LOW 17 1.40 1.66 1.12 18
NKE 17 1.30 0.99 0.72 18
AXP 16 1.04 1.40 0.99 17
BF.B 16 1.00 1.15 1.07 17
BHP 16 1.04 4.75 9.35 25
INTC 16 0.79 2.48 2.60 19
V 16 0.98 0.60 0.62 17
CMCSA 15 0.84 1.82 2.00 17
CSCO 15 1.17 2.95 2.42 17
JPM 15 1.06 2.50 2.27 17
BAC 14 1.17 1.88 1.59 16
BAX 14 1.00 1.05 1.24 15
FAST 14 1.64 2.44 1.85 16
HD 14 1.70 2.11 1.68 16
LH 14 1.16 0.00 0.00 14
WMT 14 1.00 2.00 1.52 16
BRK.A 13 1.00 0.00 0.00 13
MCD 13 1.12 2.37 1.97 15
ROST 13 1.06 0.83 1.09 14
BABA 12 0.63 0.00 0.00 12
TJX 12 1.17 1.31 1.40 13
GS 11 1.07 1.61 1.64 13
ORCL 11 1.38 1.53 1.46 12
SBUX 11 1.07 1.81 1.71 13
UNP 11 1.33 2.01 1.68 13
BA 10 0.81 2.36 0.84 11
BDX 10 0.82 1.30 1.32 11
TM 10 1.04 2.81 2.27 12
UPS 10 1.24 2.95 1.87 12
CHKP 9 0.85 0.00 0.00 9
GM 9 0.86 3.96 0.65 10
GPC 9 1.03 2.98 2.50 12
GWW 9 1.50 1.87 1.26 10
MDT 9 0.80 2.08 2.35 11
MRK 9 0.82 2.98 3.29 12
SYY 9 1.11 2.36 2.31 11
BKNG 8 0.91 0.00 0.00 8
JNJ 8 1.02 2.60 2.41 10
PEP 8 1.13 2.85 2.44 10
CHRW 7 1.13 2.28 1.92 9
CTSH 7 0.93 1.06 1.10 8
SEIC 7 0.86 1.13 1.22 8
TRV 7 0.96 2.35 2.10 9
BWA 6 0.65 1.58 1.40 7
CLX 6 1.08 2.44 2.52 9
CVX 6 0.92 4.49 4.25 10
DD 6 0.84 2.65 1.44 7
HSY 6 1.36 2.24 1.74 8
KO 6 1.00 3.21 2.78 9
NSRGY 6 1.31 2.60 2.22 8
RHHBY 6 0.89 3.05 2.36 8
USB 6 0.94 2.89 2.89 9
DIS 5 0.91 1.37 0.52 6
DLTR 5 1.33 0.00 0.00 5
PFE 5 1.30 3.67 2.80 8
PG 5 1.39 2.77 2.09 7
UL 5 1.01 3.15 3.80 9
GD 3 1.09 2.18 2.20 5
VZ 3 0.90 4.46 4.67 8
BIIB 2 0.66 0.00 0.00 2
HRL 2 1.32 1.87 1.97 4
MMM 2 0.95 2.94 3.29 5
RTX 2 1.01 2.54 2.22 4
BIDU 0 0.81 0.00 0.00 0
CL 0 1.17 2.33 2.12 2
BMY -1 0.90 2.94 3.20 2
XOM -1 0.81 5.33 5.07 4
MO -2 0.91 6.06 7.07 5
WFC -2 0.87 3.43 1.10 -1
IBM -3 1.12 4.57 4.86 2
BUD -6 0.67 2.96 0.95 -5
KHC -6 0.72 4.61 4.28 -2
WBA -9 1.19 3.10 3.51 -5