Appen, Entropy, DCF Models & Investor Behaviour, page-263

$14 implies a compounded annual growth rate (CAGR) of 5% across the next decade and a terminal EBITDA multiple of 15x. So the question back to you @Tendies4me is do you think Appen will grow faster or slower than 5% per annum over the next decade?



The actual growth doesn't actually matter to me. That might sound odd, but here is why it doesn't matter:

What matters most is what analysts THINK the growth rate will be over the next decade. The market is forward-looking. Any company is simply worth the discounted sum of all future cash flows. As long as at some point in the future, the sentiment pendulum swings again, and analysts become bullish on Appen, the share price will reflect that...

I can't predict exactly when this will happen, but if I had to guess, I would guess that it will happen towards the end of this year when Appen is in a position to provide a strong outlook for CY2022.

History suggests that when it comes to the share market, the sentiment pendulum is rarely ever static...

T.E.P.