I would like to know which companies you think can have a x10 return in the next decade, what your bets are on "Ten Baggers" and the reasons why you believe in those companies
I'll start, don't forget to leave your company in the comments!
$BFIT (+0%) a chain of low cost gyms all over Europe, in Spain they are growing like crazy, only in my city there are 4 or 5 and 5 years ago there were none, the company does not show profits and they have a specific management policy Grow at all costs, in the stock market today Basic Fit is worth 1.6B Euros and they have 4.5 Million customers all over Europe,
Estimating an average ticket of 22€ (They have subscriptions from 20-35€ per month) per customer each month and an approximate margin of 50% (there are no more than 3 workers per gym) that I think they should reach without problem, valuing the company at 18 times the profits, currently we would have a market value of 10.69B, in less favorable circumstances with a margin of 30% we would talk about a valuation of 6.41B
I don't think it is too crazy that when they spend a few years growing the number of members and gyms, reducing their level of indebtedness and ceasing to be so aggressive in their policy of continuous growth and starting to show benefits, they can capitalize enough to make a x10 (16B Euros) especially if the number of customers increases at the rate of recent years as so far and net margins are high enough (+30%).
And now the important thing,
What is your big bet? 🤔