What is the market’s view of TriplePoint Venture Growth BDC CN future operating performance as reflected in the current price of $9? To achieve average annual stock market performance of 9.0% over the next 6 years, TriplePoint Venture Growth BDC C shares will need to reach $16. Upper quartile performance will require a $18 TriplePoint Venture Growth BDC C stock price by 2029.
Executive Summary
- TriplePoint Venture Growth BDC C important characteristics: high financial strength, stability, very low expected growth, and very low profitability. A big positive influence on TriplePoint Venture Growth BDC C valuation is its superior Growth.
- Very high valuation, lagging shareholder returns. Current valuation levels are very high relative to the TriplePoint Venture Growth BDC C Peer Group. Recent market returns have substantially underperformed the TriplePoint Venture Growth BDC C Peer Group. Total shareholder returns expected to significantly beat the overall equity market. Based on current investor expectations, TriplePoint Venture Growth BDC C shares should reach a level of $13 by 2029 — an 21.4% per year total shareholder return. A 2029 stock price of $16 would reflect median performance and a price of $18 would be required to reach upper quartile performance.
- Growth has been TriplePoint Venture Growth BDC C biggest valuation strength. Historical growth has been very high relative to the TriplePoint Venture Growth BDC C Peer Group and forecasted growth is relatively below average. Asset Growth, and Revenue Growth have been superior. Equity Growth has lagged. TriplePoint Venture Growth BDC C historical income statement growth has been higher than growth in the balance sheet. Revenue growth has exceeded asset growth; earnings growth has exceeded equity growth resulting in an improving return on equity.
- Asset Turnover is group leading. Pretax Margin, Pretax ROA, and Return on Equity are group lagging. The company has very high excess cash and will have to work to reinvest at attractive returns to support profitability and valuation.
- TriplePoint Venture Growth BDC C risk profile is favorable. Overall variability has been relatively low with relatively low revenue variability, very low E.P.S. variability, and very high stock price volatility. Financial Strength is relatively very high and earnings’ expectations are below average. The debt/capital ratio has risen very significantly.
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