Price/Growth Flow
Definition of 'Price/Growth Flow'A measure formulated to identify companies that are producing solid earnings and investing a large amount in research and development (R&D). This measure is calculated as the following: |
|
Investopedia explains 'Price/Growth Flow'The price-to-growth flow provides a good indication of how much a company is spending on R&D; however, it does not gauge how successful this R&D will be. A large amount spent on R&D does not guarantee product innovations or a successful market implementation that will generate profits for the company. |
Related Definitions
Articles Of Interest
-
Buying Into Corporate Research & Development (R&D)
Investors take note: companies that cut research and development are in danger of saving today but losing big tomorrow. -
The Ins and Outs Of In-Process R&D Expenses
Are these charge-offs fair accounting or earnings manipulation? Learn more here. -
Investing With A Purpose
Your reasons for investing are bound to change as you go through the ups and downs of life. Setting goals is the first step in determining which investment vehicles are right for you. -
Income, Value and Growth Stocks
Investors who buy stocks generally seek one of three criteria: undervalued holdings, growth potential or steady income. The characteristics of stocks in each of these categories differs accordingly. -
Breaking Down The TSP Investment Funds
For investors seeking growth, income AND capital preservation, the Thrift Savings Plan offered by the U.S. government is a great option to consider. In this article, we examine the five core ... -
Portfolio Growth Strategies
There are many ways to grow a portfolio, and the best approach for a given investor will depend upon various factors. -
4 Steps To Building A Profitable Portfolio
This is a step-by-step approach to determining, achieving and maintaining optimal asset allocation. -
Thomas Rowe Price: Always Right
This great investor mastered a new type of investing with every new market he faced. -
Great Company Or Growing Industry?
Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth. -
Analyst Forecasts Spell Disaster For Some Stocks
The type of stock that analysts cover can heavily influence their predictions.
Free Annual Reports