Xero tops Forbes list of World's Most Innovative Growth Companies for second year in a row
But methodology will make some suck air through their teeth.
Xero has topped Forbes.com's ranking of The World's Most Innovative Growth Companies for the second year in a row.
The high-profile business site's methodology will cause some to suck in through their teeth. The article explains:
Companies are ranked by their innovation premium: the difference between their market capitalization and a net present value of cash flows from existing businesses (based on a proprietary formula from Credit Suisse HOLT). The difference between them is the bonus given by equity investors on the educated hunch that the company will continue to come up with profitable new growth.
Boosters will applaud that Xero has the most optimistic investors (and, to be sure, some like Accel and Peter Thiel can hardly be called noobs).
Cynics will see Forbes' chosen methodology as serving up a list that could be called The World's Most Overvalued Growth Companies.
Regardless, the Forbes piece has generated a wave of positive exposure for Xero in the US, which won't hurt ahead of its probable Nasdaq listing.
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Xero tops Forbes list of World's Most Innovative Growth Companies for second year in a row
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