Home Uncategorized How can I know the compound growth rate of listed companies? What is the compound growth rate?

How can I know the compound growth rate of listed companies? What is the compound growth rate?

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Based on what calculation? Which listed companies have higher compound growth rate?

compound growth rate
the annual growth rate of an investment in a specific period
the calculation method is the N root of the percentage of the total growth rate, and N is equal to the number of years in the relevant period
the formula is:
(existing value /basic value) ^ (1 /years) – 1

the English abbreviation of compound growth rate is CAGR (compound annual growth rate)
CAGR is not equal to the value of gr (growth rate) in real life. Its purpose is to describe the expected value obtained by transforming a return on investment into a more stable return on investment. We can think that CAGR smoothes the return curve and will not be lost by the drastic change of short-term return
this concept is not complicated. For example, you initially invested $10000 on January 1, 2005, but your assets increased to $13000 on January 1, 2006, to $14000 in 2007, and to $19500 on January 1, 2008
according to the calculation formula, your CAGR would be the ratio of your ending value to starting value (, 500 /, 000 = 1.95) raised to the power of 1 /3 (since 1 /# of years = 1 /3), then 1 from the resulting number
  1.95 raised to 1/3 power = 1.2493. (This could be written as 1.95^0.3333)
  1.2493 -1=0.2493
  Another way of writing 0.2493 is 24.93%.
the CAGR obtained in the final calculation is 24.93%, which means that your three-year return on investment is 24.93%, that is, the growth rate calculated by year is flattened on the time axis. Of course, you can also see that the growth rate in the first year is 30% (13000-10000) /10000 * 100%
it can be understood that the annual growth rate is a short-term concept. From the perspective of the development of a product or industry, it may be in a period of growth or outbreak, and the annual results vary greatly. However, if measured by the “compound growth rate”, it is an accounting based on long-term time, Therefore, it can better explain the potential and expectation of industrial or product growth or change

I recommend several companies with high compound growth rate: (good performance does not mean high compound growth rate –)

Yuntianhua: the compound growth can exceed 20% in the next three years
Shanghai Pudong Development Bank: excellent investment target under the high growth pricing logic
conch profile: the company will enter a new growth period
Bank of China: expand its business in the direction of diversification in the future
Yunnan Copper: become the biggest beneficiary of copper price rise
Golden Mantis: decoration business promotes the overall gross profit margin rise
Lanhua Kechuang: coal chemical industry It is worth looking forward to the continuous growth of business
Wanxiang money tide: the gross profit of transmission system is expected to rise in the future
Xinmin Technology: a textile enterprise with good growth and good profit

the annual growth rate of an investment in a specific period

for example, you initially invested $10000 on January 1, 2005, but your assets increased to $13000 on January 1, 2006, to $14000 in 2007, and to $19500 on January 1, 2008

enterprises with excellent performance, such as China Life Insurance, China Ping An, Guizhou Maotai
COSCO Shipping, China ship, China Shenhua

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