# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Growth Investing

Growth Investing

Growth investing is an investment approach emphasizing stocks that are making more and more money.

Investors can define growth differently. Some might prioritize businesses with increasing revenue. Others might use free cash flow or net income. But they all want growing businesses.

Stock of companies with good growth prospects are often relatively expensive. When compared to their industries, they can look pricey on metrics like price/earnings, price/book, and price/sales. Investors pay a premium because they believe these businesses will eventually be worth more than they paid for them. You can think of growth investing is the opposite of value investing, where investors buy shares of companies that are cheaper than their worth.

Sponsors Center
Sponsored Links