$Robinhood(HOOD)$ I believe HHOODOOD can deliver 20%+ CAGR returns over the next 5 years:
PRICE TARGET: $148 --> $148
POTENTIAL UPSIDE: +85% ✅
ASSUMPTIONS:
LTM Revenue: $4.473B
5Y Revenue CAGR: 22% --> 20%
2030 Profit Margin: 52%
2030 PE Ratio: 35
Shares outstanding: 0.908B
Shares reduction: 0%/year
VALUATION:
Q4 2030 $HOOD SHARE PRICE =
4.473 * (1.20)^5 * 0.52 * 35 /
[0.908 * (1.00)^5] = 223$
You can now choose the discount rate that you prefer, for Robinhood I want to use a 11%.
ACTUAL PRICE: $80
FAIR VALUE: $132
PRICE TARGET (1Y): $148
POTENTIAL UPSIDE: 85%
EXPECTED RETURNS: 22.8%/year
DIVIDEND YIELD: -
Do you own $Robinhood(HOOD)$ shares?
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