Evaluating Growth Potential of Company Z

As an equity analyst covering the technology sector, you are evaluating the long-term growth prospects of Company Z, a leading developer of cloud-based software solutions. Recent trends indicate a significant shift towards digital transformation across industries, and Company Z has established a strong customer base and innovative product offerings. However, you are concerned about the competitive landscape, particularly with several new entrants in the software market.

Consider the following statements regarding Company Z's growth strategy:

1. The company projects a compound annual growth rate (CAGR) of 20% over the next five years, primarily driven by subscription revenue growth.
2. Analysts highlight that Company Z's price-to-earnings (P/E) ratio is significantly lower than the industry average, suggesting potential undervaluation.
3. A recent merger with a smaller competitor is expected to enhance Company Z's product portfolio and market share.

Based on this information, which aspect of Company Z’s growth potential should be highlighted for a comprehensive growth analysis?