Forbes has released its annual list of the most innovative growth companies with market values between $2 billion and $10 billion. REA Group, parent company of realestate.com.au made the list among other high-profile business from around the globe.
REA Group ranked 35th on the list and was only one of four media companies that made the cut. It is valued at $US5.9 billion.
Rightmove, a UK-based real estate portal with more property listings than any other platform in that country, topped the list as most innovative growth company. Rightmove is valued at around $US4.6 billion. Forbes reports that the reason for Rightmove’s massive success and growth is it was the first mover in the UK online real estate listings when it was founded in 2000.
Second on the list is Dexcom, a San Diego-based firm that makes medical devices for diabetes management. It is among a high number of health care companies that dominate the list. Fashion retail company ASOS ranked third on the list, despite a -17% 5-year average net income growth.
Other companies on the list include TripAdvisor (#62), Seek (#37), Domino’s Pizza (#24), Net-a-Porter (#14) and carsales.com.au (#12).
Forbes ranks companies on this list by their innovation premium: a complex methodology that calculates the difference between their market capitalisation and the net present value of cash flows from existing businesses (based on a proprietary algorithm 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.