---
title: "Definition of Growth"
url: https://signalscreener.fr/definition/growth/
markdown_url: https://signalscreener.fr/definition/growth.md
description: "Growth rates show how fast key metrics are increasing year-over-year."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "Growth"
  - "Growth Rates"
translations:
  es: https://signalscreener.fr/es/definition/growth.md
  fr: https://signalscreener.fr/fr/definition/growth.md
  zh: https://signalscreener.fr/zh/definition/growth.md
---

# Growth Rates

## What is Growth?

Growth rates show how fast key metrics are increasing year-over-year. Revenue growth shows sales expansion, earnings growth shows profit growth.

## Think of it like this

Your salary grows from $50K to $55K (10% growth). Next year to $60.5K (another 10%). That compound growth builds wealth - same with companies!

## Formula

```
Growth Rate = (Current - Previous) / Previous × 100
```

- **YoY Growth**: Year-over-year change
- **CAGR**: Compound Annual Growth Rate over 5 years
- **EPS Growth**: Earnings per share growth

## Why it matters

- Growth drives stock prices
- Shows business momentum
- Indicates market share gains
- Compound growth creates wealth

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 0% | Declining | Losing revenue or profits |
| 0-10% | Slow Growth | Mature company pace |
| 10-25% | Good Growth | Above average expansion |
| > 25% | High Growth | Rapidly expanding |
| > 30% | Hyper Growth | Explosive expansion |

## Real-world example

Amazon 2010s: 30% revenue growth. Coca-Cola: 3% growth - mature. Tesla: 50% growth - disrupting industry. Declining retailer: -10% - losing to e-commerce.

## Things to watch out for

- High growth often unsustainable
- Quality matters more than speed
- Compare to industry average
- Watch for growth at any cost

---

This is educational content, not financial advice.

Source: [Definition of Growth](https://signalscreener.fr/definition/growth/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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