Price/Growth Flow

(redirected from Price-to-Growth Flow Ratio)

Price/Growth Flow

A measure of a company's earnings and the amount it spends on research and development. A high ratio indicates that the company has high earnings and/or spends significantly on its R&D, while a low ratio indicates the opposite. It is important to note that while the ratio measure the amount spend on R&D, it does not measure how successful or efficient the R&D spending is. The price/growth flow is calculated as follows:

Price-growth flow = (earnings per share + R&D per share) / price per share.