Fundamental Glossary / Growth Metrics

Realization Growth

The percentage change in average price achieved per unit.

Formula

(This period revenue / this period volume) / (last period revenue / last period volume) - 1.

What it means

Realisation is the average selling price the company actually got, after discounts and mix. Realisation growth is the change in that average.

It combines list-price changes, discounts, product mix, and sometimes currency. It is not a pure price index unless mix is held constant.

How to read it

Realisation growth above cost inflation protects margins. Realisation growth that lags cost inflation squeezes them, even if volume is fine.

What to watch

A richer mix can lift realisation while the price of every single product fell. Ask whether the company raised prices or only sold more of the expensive variant.

This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.