Revenue Growth Rate

Revenue growth rate is the percentage increase in a company's total revenue over a given period. In stock valuation, it is a primary driver of free cash flow projections and terminal value assumptions in DCF models.

Fórmula

Revenue Growth Rate = (Revenue_current − Revenue_prior) / Revenue_prior × 100%

Ejemplo

If a company grew revenue from $800M to $960M in one year, the growth rate is 20%. In stock valuation, analysts commonly use a blend of historical rates, analyst consensus, and top-down industry forecasts to project future revenue growth.

Por Qué Importa

Revenue growth rate is the single most impactful assumption in most DCF stock valuations. A 2% change in the projected growth rate can move the intrinsic value estimate by 20–40%. Using overly optimistic growth assumptions is the most common cause of inflated stock valuation.

Cómo MiniValuator Usa Revenue Growth Rate

MiniValuator allows users to input a high-growth rate for the initial forecast phase and a lower stable rate for the terminal period. The sensitivity heatmap shows how stock valuation changes across a range of growth assumptions.

En la Práctica

Términos Relacionados

  • Discounted Cash Flow (DCF) Discounted Cash Flow (DCF) is a fundamental stock valuation methodology that estimates the present v...
  • Free Cash Flow (FCF) Free Cash Flow (FCF) is the cash a company generates from its core business operations after funding...
  • Terminal Value Terminal value represents the present value of all future cash flows beyond the explicit forecast pe...
  • Two-Stage DCF Model A two-stage DCF model divides the forecast period into two phases: a high-growth stage (typically 5–...

¿Listo para aplicar este concepto? Prueba la Calculadora DCF de MiniValuator — calcula el valor intrínseco de cualquier acción estadounidense en menos de 60 segundos.