FMP
Dec 5, 2023 5:48 AM - Parth Sanghvi
Growth ratios serve as essential tools in financial analysis, enabling stakeholders to anticipate a company's potential for expansion and performance trajectory. This comprehensive guide will explore various growth ratios, their significance, and how they facilitate forecasting future growth prospects for businesses.
Dividend Growth Rate:
Retention Ratio:
Sustainable Growth Rate:
Growth ratios are crucial as they:
Predict Future Potential: Aid in forecasting a company's growth trajectory based on historical data.
Inform Investment Decisions: Provide insights into a company's sustainability and potential for long-term returns.
Facilitate Strategic Planning: Assist in aligning strategies with growth potential and capital allocation decisions.
Real-world examples showcasing the importance of growth ratios in forecasting:
Tech Company's Expansion Strategy:
Manufacturing Company's Dividend Policy:
Long-term Vision: Using growth ratios to align investment strategies with a company's long-term growth potential.
Continuous Analysis: Regularly monitoring changes in growth ratios to adapt forecasts based on market conditions.
Growth ratios serve as valuable indicators for forecasting a company's future growth prospects and potential. Understanding and leveraging these ratios enable stakeholders to make informed decisions, align strategies with growth potential, and prepare for future market changes.
Sep 11, 2023 1:38 PM - Rajnish Katharotiya
Price to Earnings is one of the key metrics use to value companies using multiples. The P/E ratio and other multiples are relative valuation metrics and they cannot be looked at in isolation. One of the problems with the P/E metric is the fact that if we are in the peak of a business cycle, earni...
Sep 11, 2023 1:49 PM - Rajnish Katharotiya
Price-to-Earnings ratio is a relative valuation tool. It is used by investors to find great companies at low prices. In this post, we will build a Python script to calculate Price Earnings Ratio for comparable companies. Photo by Skitterphoto on Pexels Price Earnings Ratio and Comparable Compa...
Oct 17, 2023 3:09 PM - Davit Kirakosyan
Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%. Even though there aren’t any apparent problems with the proposed solu...