XRO
On our numbers, XRO (the accounting software company) needs to grow earnings at about 68% (call it a round 70% b/w friends) each year over the next decade, in order to “grow into” its valuation, such that it generates a 7% CAGR total return.
That’s…a lot. Secular growth narrative at any price. Just looking at the simple mix of valuation measures tells you that this thing is priced for flawless execution.
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