How 1$ became 1100$ – Breakdown of one of the best stocks in the last 20 years

​

Now let's break down how Monster Beverage Corporation has achieved an 42% CAGR over 20 years.

In early 2002, $MNST was trading at 15x earnings. Today the P/E ratio is 44. Therefore multiple expansion contributed 3x of the returns.

$MNST earnings were about $3 million in 2002 comparison to the TTM earnings of $1.2 billion now. Earnings growth of ~35% over the period, drove a 400x return since 2002

In 2002, there were approximately 496,3 million shares outstanding; now, there are 522,1 million, which contributes to a negative return of 0.92x.

3 * 400 * 0.92 = ~1100x total return or 42% CAGR

And I think the have still plenty of room to grow even further