Revenue Growth (YoY)
Tier 2 · Engine Room · 1.0× weightIs the company making more money than last year?
Measures year-over-year top-line expansion using a rolling TTM (trailing twelve months) methodology — summing the last four reported quarters versus the prior four. This eliminates seasonality distortion and provides a more stable signal than single-quarter comparisons. Falls back to annual YoY if sufficient quarterly data is unavailable.
Revenue growth is the engine. Without it, margin expansion and cost efficiency are just rearranging deck chairs. Sustained top-line growth is the foundation of every long-term investment thesis.
Targets are sector-adjusted. A 6% growth rate is solid for a Consumer/Retail business but underwhelming for a SaaS company. Each sector has its own benchmark reflecting what institutional investors expect from that business model.
Growth meets or exceeds sector ceiling target
Growth within sector midpoint range
Negative revenue growth — declining top line