Attractiveness Ranking of the Top 50 US Tech Companies Based on Potential Returns Estimated by SIRRIPA
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2025
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| author | Sam, Rainsy |
| author_facet | Sam, Rainsy |
| contents | <p><span lang="EN-US">This article introduces a new <strong>attractiveness ranking of the Top 50 US technology companies</strong> based on <strong>SIRRIPA (Stock Internal Rate of Return Including Price Appreciation)</strong>.<br><br>SIRRIPA provides a <strong>forward-looking estimate of potential total returns</strong> by combining two key components:</span></p> <ol> <li><span lang="EN-US">The <strong>Stock Internal Rate of Return (SIRR)</strong>, which captures the company’s earning power as measured by the <strong>Potential Payback Period (PPP)</strong> -- the time required for the sum of discounted future earnings to match the current stock price.<br><br></span></li> <li><span lang="EN-US">The <strong>expected price appreciation</strong> over the same period, estimated under <strong>realistic and cautious assumptions</strong>.</span></li> </ol> <p><span lang="EN-US">Unlike the traditional <strong>Price-to-Earnings (P/E) ratio</strong>, which is static, backward-looking, and unusable for loss-making firms, <strong>SIRRIPA integrates growth, risk, and discounting</strong> to provide a <strong>dynamic, risk-adjusted estimate of potential returns</strong>.</span></p> <p><span lang="EN-US">The ranking reveals striking patterns:</span></p> <ul> <li><strong><span lang="EN-US">Balanced cases</span></strong><span lang="EN-US"> (e.g., Nvidia, Kyndryl, Micron) where SIRRIPA aligns closely with market performance.<br><br></span></li> <li><strong><span lang="EN-US">High-growth firms</span></strong><span lang="EN-US"> misclassified as overvalued by P/E (e.g., AppLovin, Palantir) but correctly identified as attractive by SIRRIPA.<br><br></span></li> <li><strong><span lang="EN-US">Loss-making firms</span></strong><span lang="EN-US"> (e.g., Snowflake, CrowdStrike, Cloudflare) which lack a P/E ratio ('n.a.') but are valuably assessed through SIRRIPA.</span></li> </ul> <p><strong><span lang="EN-US">SIRRIPA outperforms the P/E ratio as a valuation and stock selection tool</span></strong><span lang="EN-US"> and, as a <strong>growth- and risk-adjusted return metric</strong>, can also be <strong>directly compared to a bond’s yield to maturity (YTM)</strong>. This opens new avenues for <strong>portfolio management</strong> by enabling cross-asset comparisons on a unified scale.<br><br><br><br></span></p> |
| format | Recurso digital |
| id | zenodo_https___doi_org_10_5281_zenodo_17102390 |
| institution | Zenodo |
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| publishDate | 2025 |
| publisher | Zenodo |
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| spellingShingle | Attractiveness Ranking of the Top 50 US Tech Companies Based on Potential Returns Estimated by SIRRIPA Sam, Rainsy <p><span lang="EN-US">This article introduces a new <strong>attractiveness ranking of the Top 50 US technology companies</strong> based on <strong>SIRRIPA (Stock Internal Rate of Return Including Price Appreciation)</strong>.<br><br>SIRRIPA provides a <strong>forward-looking estimate of potential total returns</strong> by combining two key components:</span></p> <ol> <li><span lang="EN-US">The <strong>Stock Internal Rate of Return (SIRR)</strong>, which captures the company’s earning power as measured by the <strong>Potential Payback Period (PPP)</strong> -- the time required for the sum of discounted future earnings to match the current stock price.<br><br></span></li> <li><span lang="EN-US">The <strong>expected price appreciation</strong> over the same period, estimated under <strong>realistic and cautious assumptions</strong>.</span></li> </ol> <p><span lang="EN-US">Unlike the traditional <strong>Price-to-Earnings (P/E) ratio</strong>, which is static, backward-looking, and unusable for loss-making firms, <strong>SIRRIPA integrates growth, risk, and discounting</strong> to provide a <strong>dynamic, risk-adjusted estimate of potential returns</strong>.</span></p> <p><span lang="EN-US">The ranking reveals striking patterns:</span></p> <ul> <li><strong><span lang="EN-US">Balanced cases</span></strong><span lang="EN-US"> (e.g., Nvidia, Kyndryl, Micron) where SIRRIPA aligns closely with market performance.<br><br></span></li> <li><strong><span lang="EN-US">High-growth firms</span></strong><span lang="EN-US"> misclassified as overvalued by P/E (e.g., AppLovin, Palantir) but correctly identified as attractive by SIRRIPA.<br><br></span></li> <li><strong><span lang="EN-US">Loss-making firms</span></strong><span lang="EN-US"> (e.g., Snowflake, CrowdStrike, Cloudflare) which lack a P/E ratio ('n.a.') but are valuably assessed through SIRRIPA.</span></li> </ul> <p><strong><span lang="EN-US">SIRRIPA outperforms the P/E ratio as a valuation and stock selection tool</span></strong><span lang="EN-US"> and, as a <strong>growth- and risk-adjusted return metric</strong>, can also be <strong>directly compared to a bond’s yield to maturity (YTM)</strong>. This opens new avenues for <strong>portfolio management</strong> by enabling cross-asset comparisons on a unified scale.<br><br><br><br></span></p> |
| title | Attractiveness Ranking of the Top 50 US Tech Companies Based on Potential Returns Estimated by SIRRIPA |
| url | https://doi.org/10.5281/zenodo.17102390 |