Despite recently falling on hard times, the Polynovo Ltd (ASX: PNV) share price been a star performer over the long-term.
Arguably, investing your money in businesses that are either new to market or emerging can reap some serious rewards. Of course, there is an inherent risk, particularly given the medical device company was outside the S&P/ASX 200 Index (ASX: XJO).
Below, we calculate how much you would have made if you’d bought $5,000 worth of Polynovo shares five years ago.
How much would your initial investment be worth now?
If you’d invested $5,000 into Polynovo shares in 2017, you would have picked them up for approximately 23.5 cents apiece. This equates to about 21,276 shares without topping up along the way during the retracement periods.
Fast-forward to today, Polynovo shares closed at $1.035 on Friday. This means those 21,276 shares would be worth a staggering $22,020.66.
When looking at percentage terms, this implies a gain of 340% or an average yearly return of 34.52%.
In comparison, investing the same amount in an ASX 200 index-tracking fund would have given back 26.33% over 5 years. This equates to average of 4.97% per year.
If you are wondering about Polynovo dividends, the company has chosen not to pay a percentage of its profits to date. Instead, it has decided to expand its geographical spread and increase brand investment to drive consumer demand.
Polynovo share price snapshot
Over the past 12 months, the Polynovo share price has travelled 66% lower and is down 31% year to date.
The company’s shares hit a 52-week low of 83.5 cents in March before moving in a sideways channel of late.
Polynovo presides a market capitalisation of roughly $686.5 billion and has more than 661.68 million shares on its registry.
The post Despite a recent rough trot, you’ll be amazed to know what $5,000 of Polynovo shares bought 5 years ago is worth now appeared first on The Motley Fool Australia.
Should you invest $1,000 in Polynovo right now?
Before you consider Polynovo, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Polynovo wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- These are the 10 most shorted ASX shares
- Why does the Polynovo share price remain one of the most shorted on the ASX?
- 3 beaten up shares you might be surprised to learn are still part of the ASX 200
- These are the 10 most shorted ASX shares
- March was a stellar month for the Polynovo share price. Here’s why
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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