Despite recently falling on hard times, the Polynovo Ltd (ASX: PNV) share price has been a star performer over the long term.
Arguably, investing your money in businesses that are either new to the market or emerging can reap some serious rewards. Of course, there is an inherent risk, particularly given that 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 an 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 million and has more than 661.68 million shares on its registry.
