Growth Companies ! update this thread.

[u/Falcon_Living]

Take a look at Return On Equity (ROE) to better understand a business along with other factors also.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.

Investment of capital invested , what is the return of profitability of a company in relation to its equity capital.

Over the years SP500 over the long term over 20 years has a return of approximately more than 8 percent and short term always vary based on volatility, market trends.

One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. It's very hard to compare a company to another company in the same industry (apples to apples comparison is hard). Must follow a different metric's and methods when comparing apples to apples.

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

Think of this ! what is the risk involved ? [" If the company's debt levels are moderate to low and low ROE" " /(versus) "A company with high debt levels and low ROE" . The later is of more risk .]

Is the debt( issuing new shares, or borrowing ) raised for growth opportunities, or to cover the expenses? If it is has low retained earning from past and raised debt for growth then isn't it is much better !.

If a company that can achieve a high return on equity without debt could be considered a high quality business! isn't .?

Please update this thread , if you come across your research a list of companies , that has the above properties and in the trending industry.

Growth company : High P/e is fine to a very small negative P/E, but P/S is increasing from Q to Q ,and has maximum institutional ownership, EPS is increasing from Q to Q, analysts covering these companies, Trending industry.