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One-year Growth, g = (X2 -X1) / X1 Multi Year Growth is the compound growth over a number of years. Compound (Multi Year) Growth =
One-year Growth, g = (X2 -X1) / X1 Multi Year Growth is the compound growth over a number of years. Compound (Multi Year) Growth = (X2 / X1) 1/n -1 In these formulae, X is used because these growth rates can be used for Sales Growth, EPS growth, EBITDA Growth or any other kind of growth. Weymouth Forge, Inc. has LTM sales of $191M, one-year prior sales were $175M, three years prior, sales were $148M.
1. Compute its one-year sales growth.
2. Compute its Compound sales growth over three years.
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