Growth Firm

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Dictionary Says

Definition of 'Growth Firm'

A company that is growing at a rapid pace compared to its peers or to the broad economy. Although there is no hard-and-fast rule for defining growth, a growth firm generally has the capability to increase annual revenues by more the industry average over a sustained period. A firm would not be classified as a growth firm on the basis of a one-time surge in revenues; rather, growth has to be demonstrated over a number of years. 
Investopedia Says

Investopedia explains 'Growth Firm'

Growth firms have the ability to scale up their business very rapidly. One consequence of this rapid growth is that the firm’s balance sheet may come under significant pressure as capital demands escalate in line with business growth. While growth firms in the early stages may not be profitable, investors are generally willing to take a longer-term view in the expectation that rapid revenue growth will eventually translate into increasing profits and cash flow.

Growth firms can be found in any sector, but they tend to be clustered in areas such as technology and life sciences. As some of the biggest and most successful companies such as Apple and Google demonstrated in the past, size is also no barrier to being a growth firm.

Search results for

'Growth Firm'

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    ... For example, the conclusion that high accruals indicate poor earnings quality would
    be weakened if the firm was a high-growth firm but strengthened if the firm ...

  • Great Expectations: Forecasting Sales Growth

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    ... Market Share A company's market share can also have a big impact on its future sales
    growth. Does the firm--like the computer chip giant, Intel--dominate its ...

  • Bio-Reference Labs Posting Impressive Internal Growth

    http://stocks.investopedia.com/stock-analysis/2011/Bio-Reference-Labs-Posting-Impressive-Internal-Growth-BRLI-LH-DGX-MTOX-HMA-HCA0830.aspx
    ... growth. Growth above 20% is nothing new to the firm and it is quick to point
    out that it is growing by internal means. In contrast ...

  • Play The Growth In Mining M&A

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    ... The firm plans to invest more than $80 billion in key divisions over five years ... Betting
    on the Growth The growth in mining and commodities M&A can be seen as a ...

  • J2 Global Returning To Growth

    http://stocks.investopedia.com/stock-analysis/2011/J2-Global-Returning-To-Growth-JCOM-PGI-T-VZ-GOOG0808.aspx
    ... nearly 40% to $85.7 million and consisted of a mix of organic, internal growth and
    acquisitions. Last year, j2 acquired online data backup firm KeepItSafe and ...

  • Valuing Firms Using Present Value Of Free Cash Flows

    http://www.investopedia.com/articles/fundamental-analysis/11/present-value-free-cash-flow.asp
    ... such activity. After this high growth, the firm might be expected to go
    back into a normal steady growth into perpetuity. To see ...

  • Earnings Quality: Investigating The Financing Of Accruals ...

    http://www.investopedia.com/university/accounting-earnings-quality/earnings8.asp
    ... assets, the analyst can get an idea of the quality of the assets on the balance
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  • Global Payments Riding Industry Growth Wave

    http://stocks.investopedia.com/stock-analysis/2010/Global-Payments-Riding-Industry-Growth-Wave-GPN-MBI-BMO-BCS-MA1013.aspx
    ... This will stem from organic growth and bolt-on acquisitions. ... Cash generation has
    also been strong as the firm's business model is not capital intensive. ...

  • The Greatest Investors: Thomas Rowe Price, Jr. | Investopedia

    http://www.investopedia.com/university/greatest/thomasroweprice.asp
    ... Most Famous For: Price is considered to be "the father of growth investing."
    He founded the investment firm T. Rowe Price Associates, Inc. ...

  • Is Warren Buffett Really A Value Investor? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0511/Is-Buffett-Really-A-Value-Investor.aspx
    ... multiples including P/E and P/B ratios are a good starting point, but at the end
    of the day it is also necessary to estimate a firm's growth prospects and cash ...

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