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Long term investing can be life changing when you buy and hold the truly great businesses. While the best companies are hard to find, but they can generate massive returns over long periods. To wit, the 11 bit studios S.A. (WSE:11B) share price has soared 2829% over five years. This just goes to show the value creation that some businesses can achieve. It's also good to see the share price up 39% over the last quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

We love happy stories like this one. The company should be really proud of that performance!

Check out our latest analysis for 11 bit studios

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, 11 bit studios achieved compound earnings per share (EPS) growth of 150% per year. The EPS growth is more impressive than the yearly share price gain of 96% over the same period. So it seems the market isn't so enthusiastic about the stock these days.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

It is of course excellent to see how 11 bit studios has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at 11 bit studios's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market lost about 1.7% in the twelve months, 11 bit studios shareholders did even worse, losing 12%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 96%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Before deciding if you like the current share price, check how 11 bit studios scores on these 3 valuation metrics.

We will like 11 bit studios better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.