Reading the accounts
Organic growth
Revenue growth from the existing business, excluding acquisitions and currency effects.
How it works
Separating organic from acquired growth answers whether a business is genuinely expanding or simply buying other companies.
Acquired growth is not illegitimate, but it costs capital and carries integration risk, so the two deserve different multiples.
Related terms
Mentioned in
More in Reading the accounts
- Owner earnings
- Operating margin
- Return on equity
- Operating leverage
- Return on invested capital
- Operating income
- Operating expenses
- Runway
All 51 Reading the accounts terms · The full glossary, 433 terms
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