Sales growth shows the increase in sales over a specific period of time.
The CAGR formula is the following: (current year's value / value 3 years ago) ^ (1/3) - 1
NOTE: If the starting year's figure is zero, the CAGR is not defined.
Sales growth is important because it suggests that demand for a company's products or services will be sustained or increasing in the future.
Growth rates differ by industry and company size. Sales growth of 5-10% is usually considered good for large-cap companies, while for mid-cap and small-cap companies, sales growth of over 10% is more achievable.
It is important to distinguish however between organic sales growth and acquisitive growth, as the former is more sustainable.
Let’s get you setup so you get the most out of our service
Brilliant - You've created a folio! Now let's add some stocks to it.
