What it is
Annualised revenue growth over the last 5 years. Revenue today $20B vs. $10B five years ago = 14.9% CAGR.Why it's the leading indicator
Revenue is "real" - it's either there or it's not. Earnings can be massaged with cost cuts, accounting choices, and one-off gains. Cash flow can be flattered by under-investing. Revenue growth is the cleanest read on whether more customers are buying more product, period.What "good" looks like
- 20%+: high-growth - usually tech or consumer breakouts
- 10–20%: strong, healthy compounding
- 5–10%: market-average
- 0–5%: mature business, look at margin expansion and capital returns instead
- Negative: structural decline - usually a no-go unless very deeply discounted