Growth Rate
What is it? The rate at which stocks, the economy, or company earnings are growing. There are a number of ways to calculate a compound growth rate. In One-Click Scorecard and Stock Evaluator, Quicken.com derives the compound average using the least squares method. The 5-year growth rate calculation, for instance, uses six data points: a base year plus five subsequent annual data points. Fiscal year-end figures are used for the first five data points, with the calculation updated in each interim period by time-weighting the first and last points. However, using this type of calculation, a growth rate can not be calculated if any of the data points are negative or zero during the specified time period.Added By: Peyton
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