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Investments glossary

Growth Rates

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Quotes of the day:

Those noble men who falsehood dread In wealth and glory ever grow, As flames with greater brightness glow With oil in ceaseless flow when fed.

— Sanskrit Proverb

Growth rates refer to the percentage change of a specific variable within a specific time period. For investors, growth rates typically represent the compounded annualized rate of growth of a company’s revenues, earnings, dividends or even macro concepts, such as gross domestic product (GDP) and retail sales. Expected forward-looking or trailing growth rates are two common kinds of growth rates used for analysis.


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