The Altium Limited (ASX: ALU) share price has grown by 62.5% over the last year.
Some market commentators have been saying that the Altium share price has gotten ahead of itself and there's only one way the share price can go in the short to medium term.
However, there's also a decent chance that the share price could keep rising over the next twelve months.
Altium provides electronic PCB design software for engineers. The industry is growing at a fast rate because of the growth of the 'Internet of Things'.
Here's why I think the Altium share price could keep growing:
Doubling revenue
Altium likes to make revenue estimates several years in advance. Management have been spot on with their predictions. In-fact, they have been ahead of projections so far.
The latest prediction by management is that the business will roughly double its revenue over the next few years to US$200 million.
If Altium manages to deliver on this ambitious target and grow profit margins there could be plenty of growth to come.
Exchange rate
There are a few shares on the ASX that report in a different currency, Altium is one of those businesses.
It would be unwise to try to predict which way the Australian and US Dollar are going to move over the next six to twelve months, however that movement could be favourable for Altium's Australian shareholders.
Limited other options
Investors are always looking for the best place to park their money. If there are simply no good value option, it may make sense to still invest in businesses which have growing prospects.
Altium is one business that seems fairly certain to keep growing to 2020 and beyond, so investors looking for growth could keep piling in.
Foolish takeaway
Altium is definitely not cheap, it's trading at 36x FY18's estimated earnings with an unfranked dividend yield of 1.79%.
I think prospective investors could still justify a long-term buy at the current price if the predicted growth eventuates.
