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?
< 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
Screen US stocks by Growth in the app, and see which companies pass right now.