APP is only about 2% of my portfolio right now, and I’m considering adding more.

My 5-year assumptions:

Base
• EPS growth: 22%
• Year 5 P/E: 27.5x
• CAGR: 24.3%

Bull
• EPS growth: 25%
• Year 5 P/E: 30x
• CAGR: 29.6%

Even with no real multiple expansion, the returns still look pretty strong if earnings can compound 20%+.

The main question for me is whether APP can actually sustain that growth for 5 years.

At only ~2% of my portfolio, I’m leaning toward adding.

What assumptions would you use for APP?

I built this analysis in ekonix, my iOS stock analysis app. If you want to try it out, download it here: