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Glossary · Valuation

Growth priced in

The yearly growth the current price assumes, worked backwards from our model.

Why it matters

It flips the question from “what is it worth?” to “what has to happen for this price to make sense?”. If the price needs 25% growth a year and the company grows 8%, that is a big bet.

How to read it

Compare it with how fast sales actually grew last year and over five years.

Related

Fair valueOur estimate of what one share is worth, based on the cash the business can produce.Revenue growthHow fast sales are rising compared with a year earlier.

In the Cluenex app, this explanation opens next to every growth priced in figure, with the live reading for the stock you are looking at. Open it in Cluenex