For further information ...Click here for a document describing this tool, courtesy of the BetterInvesting Space Coast Chapter. Some comments about the calculator ...This calculator is based on the idea that a minimum growth rate is one characteristic of companies which are suitable to invest in. However, it's not reasonable to expect that larger companies should be able to grow as rapidly as smaller companies. This calculator allows you to specify minimum growth rates for "Small" and "Large" companies as well as the maximum amount of revenue to be considered "Small" and the minimum amount of revenue to be considered "Large". When you enter a value for Annual Revenue (in between the "Small" and "Large" values for revenue), a corresponding minimum desired growth rate will be calculated (again, in between the "Small" and "Large" values). Here is a graph of the growth rates calculated when small companies are those below $500 million in sales and large companies are those above $5,000 million in sales, with 15% minimum growth for small companies and 7% minimum growth for large companies.
Comment on this Page Last Modified 2010-02-03 |
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