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How can we, or we can estimate the growth rates for companies?

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Question added by georgei assi , مدير حسابات , المجموعة السورية
Date Posted: 2014/12/10
Nissam Khalid
by Nissam Khalid , Finance Manager , Saudi Specialized Pipes

Growth Rate denotes the efficiency in the overall performance of an orgnaization, mainly related to the increase in revenues, net earnings and payout (dividend). The credit standing of the company is antoher criterion. In short, stable increase in ROI is a parameter incdicating Growth Rate.

mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

Increase in 

Net income

Operating cash flow

Dividend payment 

Deacrease cash flow cycle start from inventory to cash received by customers

Open new market 

Develop work environment see what best company in market do 

 

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

The estimation of growth rates is one of the key points that affect any assessment of the shares as the company's value is determined primarily according to the calculation of future cash flows of the business and not on the basis of the current flows in addition to the investor when deciding to invest in a particular company, it takes into account what will happen to him the future cash flows of the company and so he cares about the future and is expected to occur Fah.ohnak three ways can be relied upon to estimate growth rates are as follows:

1. rely on the data or historical growth rates values.

2. rely on financial analyst estimates.

3. rely on the basics and the foundations of the company to determine Alnmo.ala These three methods must be taken into account in determining growth rates because each of them is given certain information must be taken out when the method is used to assess the current value of the stock.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Positive cash flows or earnings.

Accumulated Retained Earnings

Consistent growth in dividend payments.

Improved Market share.

Income generation and Employment prospects.

Overall credibility in the market.

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Agreed with the above answers that YOY performance and ROI is the main criteria to determine the growth of any company however this does not guarantee the future performance.

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

I agree with all answers given by colleagues.

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

Awesome answers by the experts here. 

Thanks.

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