IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-05293301.html
   My bibliography  Save this paper

Proof in Performance: Empirical Validation of SIRRIPA as a Groundbreaking Equity Return Metric -AppLovin's +74% Gain in Six Weeks After Identification as Undervalued (August 20, 2025)
[Preuve par la performance : Validation empirique du SIRRIPA en tant que nouvel indicateur révolutionnaire de rendement boursier — Hausse de 74 % en six semaines de l'action AppLovin après son identification comme sous-évaluée (20 août 2025)]

Author

Listed:
  • Rainsy Sam

    (International Management School Geneva (IMSG))

Abstract

This article provides empirical validation of the Stock Internal Rate of Return Including Price Appreciation (SIRRIPA) as an advanced and predictive valuation metric derived from the Potential Payback Period (PPP) framework. By integrating earnings growth, interest rates, and risk-three key variables absent from traditional ratios such as the P/E and PEG-SIRRIPA measures a stock's total intrinsic return, combining earning power and price appreciation potential into a single annualized indicator. The model's accuracy is demonstrated through the case of AppLovin (APP), identified on August 20, 2025, as undervalued despite a seemingly high P/E ratio of 56.8. Over the following six weeks, AppLovin's share price increased by 74.15%, validating the SIRRIPA-based forecast. As of September 30, 2025, AppLovin's SIRRIPA remains 6.70%, exceeding the risk-free rate of 4.15%, confirming continued intrinsic upside.These results demonstrate that SIRRIPA provides a superior, forward-looking framework for evaluating high-growth equities, offering investors a more accurate measure of equilibrium between profitability, valuation, and market price.

Suggested Citation

  • Rainsy Sam, 2025. "Proof in Performance: Empirical Validation of SIRRIPA as a Groundbreaking Equity Return Metric -AppLovin's +74% Gain in Six Weeks After Identification as Undervalued (August 20, 2025) [Preuve par l," Working Papers hal-05293301, HAL.
  • Handle: RePEc:hal:wpaper:hal-05293301
    Note: View the original document on HAL open archive server: https://hal.science/hal-05293301v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-05293301v1/document
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-05293301. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.