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Forbes list of world's most innovative companies.

Forbes list of world's most innovative companies.

If anyone still has the thought that Tesla is not a pure breed technology company this analysis will give you some more evidences to remove that. Forbes has Tesla listed as the 4th most innovative company in the world using its "innovation premium" algorithm. It's a complex calculation basically relies on how much premium the market gave a company from what it believes of future growth due to innovation. Kind of like crowd sourced voting with everyone's checkbook.

https://www.forbes.com/sites/innovatorsdna/2018/05/29/how-we-rank-the-mo...

https://www.forbes.com/innovative-companies/list/

No other auto company or direct or indirect tech competitor like Apple, Intel or NVidia is on the list. Only Alphabet is there but it's way down on the list.

TranzNDance | January 29, 2019

I use Workday at work and am *shocked* that it is #2 on the list.

SO | January 29, 2019

ServiceNow? Seriously? Had them in for a demo. Needless to say, we didn’t pick them.

rxlawdude | January 29, 2019

@TranxzNDance, same here.

I still haven't got payroll to fix paystubs to list all pre-tax deductions. The last two are lumped into "additional deductions" so that you have to go into Workday to actually get the respective amounts. I suggested a more "dynamic" section logic so all would fit on the paystubs, but nope.

kcheng | January 29, 2019

All this list is, is a list of the most overvalued companies. Look at their methodology:

"Companies are ranked by ... the difference between their market capitalization and the net present value of cash flows from existing businesses"

Let me guess, Amazon, Netflix and Tesla are on the list, right? These are all companies with high PEs, with valuations that far outweigh their fundamentals. Because, that's what the methodology is.

TranzNDance | January 29, 2019

@rxlawdude, it looks like Workday doesn't process our paystubs, fortunately, since I can see the pre-tax deductions. Unfortunately, that provider, which is not on the Forbes list, is having issues allowing us to log in.

carlk | January 29, 2019

@kcheng Read the accompanying article. The "over-valuation" is because investors gave them the "innovation premium" which is valuation above what traditional value measurement matrix warrant. The thesis is the extra valuation comes from innovation and stock price will continue to increase tracking cash flow growth long as the company continue to innovate. Remember Amazon and Netflix were as "over-valued" 15~20 years ago as it is today, if not more so, and their stock price still have increased more than 100X since then. That's the power of innovation.

Another example is Apple had been an innovative company when Jobs was there but stopped innovate since he's gone. Take a look at it's stock price to see if you can see a (somewhat delayed) correlation.

kcheng | January 29, 2019

@carlk, yes, that's the "theory". More B-school gibberish.

blue adept | January 29, 2019

Haters gonna hate....

carlk | January 30, 2019

@kcheng Amazon and Netflix, yes Tesla too, are not b-shool gibberish. They've created real wealth.

kcheng | January 30, 2019

"carlk | January 30, 2019
@kcheng Amazon and Netflix, yes Tesla too, are not b-shool gibberish. They've created real wealth."

I didn't say anything about "real wealth", just that the above ranking is utter gibberish. B-school profs have always been trying to come up with a measure for innovation. None have succeeded.

carlk | January 30, 2019

Tell me what else beyond traditional value matix could generate high valuations those companies enjoy. It's innovatation not gibberish. Market performance of all those companies mentioned fit that model perfectly.

MySin_AZ | January 30, 2019

I work for Workday and am shocked we are not #1 :)...and its been good to me, the growth provided me the opportunity to buy a Tesla...so a win win...

Now for those that want to suggest improvements to Workday, thats on another forum...

kcheng | January 30, 2019

"carlk | January 30, 2019
Tell me what else beyond traditional value matix could generate high valuations those companies enjoy. It's innovatation not gibberish. Market performance of all those companies mentioned fit that model perfectly."

So, when the market cap of Amazon drops 33% from end of Sept 18 to end of Dec 18, with little change in the net present value of cash flows from existing businesses, then based upon the methodology, Amazon's innovation dropped 33%. Right. The wisdom of crowds.

carlk | January 30, 2019

Moron. Stock price goes up and down. Only long term trend reflects company's true business condition.

kcheng | January 30, 2019

Oh gee, a member of the Tesla mafia wants to call me a name, boohoohoo. And what does your comment have to do with the "innovation premium" algorithm and methodology, or did you not read the thread before shooting off your mouth?