Lux Investing
How do i find the growth rate of a company?
I am new to investing in stocks and here a lot about a companies growth rate. So how do i come up with that %
Public Comments
- depends what you define "growth". Probably talking about gross revenues.
- well a very rough measure would be (opening price - closing price +dividend) / (opening price) where the opening and closing prices are of the stock of the company in the time period in question. thats growth growth .... if you are asking about simply growth in profits ... well thats simply growth in profits
- There is no such thing as "growth rate of a company". You can find growth rate in revenues, earnings, assets, or number of employees though. Take the most recent number, divide it by the number as of one year ago, subtract one, and format the result as a percentage (i.e., make a mental effort to see, for example, 0.08 as 8%).
- Usually, it means the growth in the earnings of a company. As a diligent shareholder, you should only be concerned about the growth in EPS (earning per share) since that is your growth rate.
