No. of Recommendations: 19
First of all, Chris, incredible work. Thank you for putting in the time -- I think your conclusions will spark a lot of interesting thought and hopefully discussion.

My first reaction is just amazement at how smooth their ascent has been. I'm talking about the stock price too. Look at that chart! Other than during the Great Recession, what's the biggest pullback they've had? Can't be more than about 30%. And not many times was it more than 15 or 20%. And your numbers bear that out, as the multiples have been within a pretty steady band.

To me the take away is that they really never got overvalued. Perhaps another way to say this is: they were always undervalued. Think about it: should a company be able to provide a CAGR of about 26% almost independent of when you bought it over a 15 year period? Of course not. The market has never captured the value of their potential. Salesforce (CRM) has been climbing a wall of worry for its entire history!

My second thought is: do you think they're still undervalued? If they show no signs of slowing down, it seems that going forward they should provide investors a CAGR of only slightly less than their historical 26%. Heck, they may even be buying back stock by now for all I know. Seems like they're still not being given full credit for (the present value of) likely future cash flows.

Thanks again for this.

Bear
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