High Growth Stocks

Hello you very wonderful and amazing individuals that make up these forums. I sincerely hope you are having a pleasant weekend.

I kindly wondered i know that if you are looking at Value based stocks, you can work out the Total Enterprise Value, which calculates what the business is worth if you was to buy it today. You can get an understanding of whether the business is undervalued. For high growth stocks like Amazon this would not work, as the market prices in estimated future earnings potential of these growth stocks. For instance if you had strong belief that Amazon would grow earnings for the next 3 years and it continued to achieve this would the share price hopefully keep rising please? As i have conducted alot of research into the Company’s Annual Reports and Quarterly Reports and hope to plan to continue to buy on the dips including the one we have at the moment. If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me and be highly appreciated.

Sending you lots of good wishes and i truly hope you continue to achieve massive success with your investing. Thanks again to all the wonderful people on these forums who share so much amazing insight. Very best wishes to you all. Take care.

Thank you for your good wishes same to you :slight_smile:

There is no guarantee that sp will reflect value of the company or future earnings. It can sometimes take many (!) years for a company to achieve a β€˜fair’ valuation. Sometimes it never happens.

When looking for undervalued stocks it also makes sense to have a margin of safety when deciding to buy the stock. Choosing this margin can be different for each investor as risk tolerance varies.

Hope this helps.

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