RE: SP29 Apr 2020 10:25
Daisy, have a look at Domino's as an example.
Here's a partial extract of an article.
'Investors who bought Domino’s on AIM and have stuck with the business have been suitably rewarded, with cash aplenty returned in the form of dividends and the group continuing on its growth trajectory. Last year, pre-tax profits grew by 28 per cent to £29.9 million and the total dividend was upped more than 30 per cent to 7.8p. Based on estimates for 2010, pointing to profits of £33.5 million, earnings of 15p and a 9.1p dividend, Domino’s trades on a prospective p/e of around 23 times, a justifiable rating given growth rates.'
Justifiable given growth rates....
So what growth rate should a company driving one of the fastest moving sectors around be given.