The magnitude of the market’s bet on growth from unknown sources is, in general, based on the company’s track record. If the market has been impressed with a company’s historical ability to leverage its strengths to generate new lines of business, then the component of its stock price based on growth from unknown sources will be large. If a company’s past efforts to create new-growth businesses have not borne fruit, then its market valuation will be dominated by the projected cash flow from known, established businesses.
