The Growth Score is a predictive measure of a business’s potential to grow over the next 12 months.
It is derived from a bespoke algorithm that analyses the characteristics of businesses that have previously achieved significant growth. Using this, Growth Flag identifies companies that are most likely to achieve 20% growth in the year ahead.
How it works
Each business is assigned a score between 0 and 100. This reflects the likelihood of achieving 20% growth. Scores are grouped into four bandings:
- Very Unlikely
- Unlikely
- Likely
- Very Likely
The higher the score, the stronger the signals associated with growth potential. These signals are identified through multivariate analysis of financial characteristics and business behaviour. Businesses with an 'Unlikely' Growth Score are still likely to grow, just not by 20%.
What “High Growth” means
“High Growth” or “High Growth Potential” refers to businesses in the Likely and Very Likely categories — those showing the strongest indicators of future growth.
