What Is Growth Year Over Year? – ValueWalk Premium

## What Is Growth Year Over Year?

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## Definition of Growth YoY

• The YoY growth looks at a companyâ€™s performance/profit year after year or period after period.
• The YoY compares the performance/profit and looks at how well the company is doing.
• The growth YoY is essential to investors as it allows them to see whether or not the business is worth investing in.

## What is the Formula for Growth YoY?

((This Year â€“ Last Year) Ã· Last Year) x 100

• You can use this formula for anything you would like to measure.
• For example, you can check the growth rate of revenue by plugging in this yearâ€™s revenue and subtracting it by last yearâ€™s revenue, dividing it by last yearâ€™s revenue, and then multiplying it by 100.
• Similarly, you can compare the growth rate in the number of customers you have by totaling this yearâ€™s number of customers and subtracting it by last yearâ€™s customers, last yearâ€™s customers, and then multiplying it by 100.

## Growth YoY in Practice

• Frank has a subway stall and sold 400,000 sandwiches in the second year of his business. He currently sells 600,000 sandwiches a year. What is the growth YoY for Frankâ€™s subway stall?
• 600,000 â€“ 400,000 = 200,000
• 200,000 Ã· 400,000 = 0.5
• 0.5 x 100 = 50%
• Therefore the growth rate for the number of sandwiches Frank sells is 50%.

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