Most investors are very concerned about the company's growth ability. Fast-growing companies can also bring substantial investment returns. So how do we evaluate a company's growth? We can focus on three key areas.

1. Revenue growth

Revenue growth is the driving force of company performance growth. For the quality of revenue growth, we need to evaluate three points. First, the absolute value of growth rate. If the company's year-on-year growth rate can exceed 20%, and the quarter-on-quarter growth rate data is also good, it is usually better. Second, look at the change in growth rate, and it is best to have an accelerated growth. Third, look at the industry growth situation, and it is best to have a higher growth rate than the same industry.

2. Net profit growth

Net profit growth is the real driving force behind business performance growth. For the quality of net profit growth, we also need to evaluate three points. The first two points are similar to the evaluation of revenue growth. The difference is that for the third point, the net profit growth rate needs to be compared with the revenue growth rate, and it is best to be higher than the revenue growth rate. This shows that the company's profitability is also improving at the same time as it maintains growth, which is a more quality and potential growth.

3. Growth duration

Sustained growth is the more meaningful growth and the source power of long-term stock price increase. For the sustainability of growth, we need to evaluate two points. First, if the company's revenue and net profit have been increasing for more than 5 years, it has already demonstrated its past growth ability. At the same time, if the industry where the company is located has a good future growth expectation, the company's potential growth rate in the future may not be bad either. Companies that can meet these two points are likely worth looking forward to in terms of growth potential and future development.