Growth value

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Under a growth stock (English: growth stock ) is defined as a public company , over a long period of time - possibly decades - across a steady, largely non-cyclical and particularly high turnover and - profit has -Growth. The prerequisite for this is a business model that can be continuously replicated by gaining additional market shares , exploiting market growth , regional expansion or by transferring proven business processes to new products and services.

Growth stocks are rare exceptional companies. Well-known growth stocks are or were, for example, Coca-Cola , Wal-Mart and Microsoft , the Internet companies eBay and Google as well as the optical chain Fielmann and the ticket service provider CTS Eventim .

In the specialist literature , the term “growth value” is occasionally limited to high-tech companies (so-called technology values ) and the economic aspect is ignored. This definition goes back to the time of the new economy boom around 1999–2001, when Deutsche Börse AG applied the term “growth value” across the board to all participants in its “ Neuer Marktventure capital stock market segment . In fact, the Neuer Markt also contained many non-high-tech companies, for example in the media industry. After the collapse of the Neuer Markt, part of its recently bad image stuck to the term “growth value”.

Financial analysis

Which serves for easy share valuation of growth stocks index growth ratio price-earnings (PEG). Accordingly, the appropriate price / earnings ratio is roughly the same as the average annual percentage earnings growth expected for the coming years.

Professional analyzes are usually based on the more complex discounted cash flow method , assuming a steadily growing free cash flow .