Fundamental Glossary

Growth Metrics

How revenue, profit, cash flow, and book value change over time. 19 topics.

Revenue Growth

The percentage change in revenue from one period to another.

Sales Growth

The percentage change in sales. In most companies this is the same idea as revenue growth.

Profit Growth

The percentage change in profit, usually profit after tax unless a different line is named.

EBITDA Growth

The percentage change in EBITDA.

EPS Growth

The percentage change in earnings per share.

CAGR (Compound Annual Growth Rate)

The constant annual rate that carries a starting value to an ending value over several years.

Revenue CAGR

The compound annual growth rate of revenue over a chosen span.

Profit CAGR

The compound annual growth rate of profit.

3-Year CAGR

A compound annual growth rate measured over three years.

5-Year CAGR

A compound annual growth rate measured over five years.

10-Year CAGR

A compound annual growth rate measured over ten years.

Book Value Growth

The percentage change in book value, or book value per share.

Free Cash Flow Growth

The percentage change in free cash flow.

Dividend Growth

The percentage change in the dividend per share.

Organic Growth

Growth from the existing business, excluding acquisitions and, often, currency swings.

Inorganic Growth

Growth that comes from buying other businesses, books of customers, or capacity, rather than from the old operations.

Same-Store Sales Growth

The change in sales at outlets that were open in both periods. Also called like-for-like or comparable-store sales.

Volume Growth

The percentage change in units sold, tonnes produced, or another physical measure, rather than in rupees.

Realization Growth

The percentage change in average price achieved per unit.