Medpace (MEDP): A Case Study in Exceptional Value Creation

Medpace is a company that has intrigued me for several years. Since going public in 2016 at $23 per share, the stock has appreciated over 13x, compounding at a low-30s rate—an exceptional performance by any standard. It also scores highly on Buffett’s retained earnings test: since 2016, retained earnings have remained relatively flat, while market cap has increased by ~$7.5 billion, highlighting the company’s ability to create substantial value with minimal reinvestment.

Let’s dive deeper into the secrets behind Medpace’s success.