Fastenal Makes Forbes’ ‘Innovative’ Companies’ List
8/22/2014 12:27:00 AM
FEATURE
Fastenal Co. was named to Forbes’ “World’s Most Innovative Companies 2014” list.
The Winona, MN-based distribution giant is number 19 on the list of 100 global companies. Forbes listed Fastenal’s market capitalization at $14.8 billion.
Others on the list include such well-known companies as Starbucks, Netflix, Whole Foods Market, Estee Lauder, Coca-Cola and Sherwin-Williams.
Forbes said its list methodology relied on “investors’ ability to identify firms they expect to be innovative.”
“Companies are ranked by their innovation premium: the difference between their market capitalization and a net present value of cash flows from existing businesses (based on a proprietary formula from Credit Suisse HOLT),” Forbes stated. “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.”
To be included, firms needed seven years of public financial data and $10 billion in market cap.
“We include only industries that are known to invest in innovation, excluding industries that have no measurable investment in R&D, so banks don’t make the list,” Forbes explained. “Nor do energy and mining firms, whose market value is tied more to commodity prices than it is to innovation.”
For summaries of the past six years of Fastenal results, click on FIN Stock Review.
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