How would i find the estimated growth rate of a company? i know they can vary but what is the standard?

Question

How would i find the estimated growth rate of a company? i know they can vary but what is the standard?

Answer 1

If the companies are public then analysts will have a forward earnings estimate.  You can usually find this on most financial sites.  Take the forward estimate and divide by the previous corresponding period to get an annualized growth rate.

Answer 2

Are you thinking of investing in that company?  Your broker should be able to provide you with information.  You can also try to look for online brokers and search for that company.  GSP is a good indicator of a company's growth and so is the liquidity.

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Answer 3

Are we talking about the revenue growth rate or the EPS growth rate?

I suspect you mean earnings per share (EPS). Look at the company's 10-K filing with the SEC. You'll see the earnings per share for each of the last few years:

(this year's earnings / last year's earnings)-1 = the most recent growth rate.

I'd look at the growth rate from each of the last few years to get a sense of what might be expected on a going-forward basis.

Answer 4

Yahoo finance has the expected growth rate under Analysts Estimates.  You can also calculate an estimated growth rate in earnings by:(net income - dividends/net income) x return on equity

Answer 5

There really isn't one. Each and every company varies given their product, the economy, and the life cycle of the industry in which they are operating. You can look at the Company's website to see what sort of growth they are projecting. If you are looking for an actual way to mathematically solve an equation to estimate growth, you can use the "slope" function in Excel. This will do a linear regression for you. Unfortunately though, this can also be a very poor way to forecast sales growth as it only uses historical figures and doesn't into consideration recent events or the current economic environment. For example, I just did one on a company that has had two years of declining sales. However, the slope function predicted a 17% growth rate...I don't think that is going to happen. The use of historical results is probably your best bet...but don't just use an arithmetic mean as this too will be skewed by outliers.