Have an interesting case question:
Say you have a stock that over 5 years has:
5% revenue CAGR 15% stock price CAGR No margin improvements No multiple expansion No debt on BS at any point
Is it possible, if so why?
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If you're looking at EV multiples then cash generation can cause this
So if multiple is low, investors can pay less for the company’s recurring cash flows which equals higher returns and shows itself in stock price growth?
Am I thinking about this correctly?
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