Price/Growth Flow

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:

Notes:

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.

See also: EPS, Price-to-Research Ratio, Profit, R and D