Revenue acceleration

This year's revenue growth minus the company's own 3-year growth rate, in percentage points.

Formula

Acceleration = latest year-over-year revenue growth − 3-year revenue CAGR

How to read it

Above +2 points is listed as a reason (accelerating), below −4 as a concern (decelerating). The scorecard counts +3 as good and −4 as poor.

How to use it

The direction of growth often moves a share price more than its level.

Limitations

One year against three; a one-off or an acquisition can swing it.

Also called: acceleration, decelerating, growth accelerating.

Related terms

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