Evaluating high growth companies is challenging, given that traditional methods often yield astronomical valuations for companies generating negative cash flow, but the rewards can be quite compelling. Any slowdown in growth rates or corporate missteps can cause swift losses in investment value. Thus, it is imperative to look beyond just current financials and evaluate the long-term potential of a company and the ability of management to execute on its growth potential.
In this article, The Murray Wealth Group looks at the financials data of three companies without naming the actual companies right away.
This is the third in a series of Independent research produced by the Murray Wealth Group Research Team. The purpose of this series is to provide insight into our portfolio construction and how our research shapes our investment decisions.