Sentences with phrase «companies growing at the same rate»

Not exact matches

You'd think that corporate debt would grow in proportion to total sales, as this additional debt is used to fund investments in productive activities that create more sales and contribute to the economy, and that higher sales, and presumably higher earnings would create a proportionate increase in the value of the company, and thus in its stock price, and that they all go up together, not in lockstep but over time more or less at the same rate.

Sometimes the market will pay twenty times earnings for a company growing at an annual compounded rate of 30 percent; sometimes it will pay sixty times earnings for the same company.

To use a simple example, if Company A grows its cash flows at 6 % for 30 years and Company B grows at 3 % over the same timeframe, Company A is worth nearly 65 % more than Company B today assuming that both companies converge to a 3 % growth rate thereafter1.

Aruanno says the company is careful to grow at a rate that will allow it to support restaurants with the same level of service it offers today and provide customers with the same high - quality sandwiches.

The company will likely grow dividends at around the same rate.

# 116 aa3 on 02.18.18 at 10:29 am Right now I like the boring CDN utilities These companies basically the best you can hope for is they grow in value at the same rate the CDN economy grows in nominal terms.

On the other hand, there are also companies that are growing their earnings at rates of 12 % to 15 % or even higher that can also be found on these same lists.

You'll need to ask how fast has the company been growing and can it continue to grow at that same rate or faster?

If you figure corporate earnings will grow 3 % a year and the company will increase its dividend at the same rate, you're looking at a 6 % expected return.