Goals may include objectives like increasing market share or retaining more clients. [1] X Research source Consider splitting your goals into short term and long term goals, which refer to goals achievable in under a year and those achievable in over one year, respectively. A good way to check your goals is to make them conform to the acronym SMART (Specific, Measurable, Achievable, Realistic, Time-Bound).

If necessary, put together additional methods to measure the growth variables that you have selected. These so-called key performance indicators (KPIs) can be measurements taken from financial statements, sales figures, or other sources that you think are necessary to assess the company’s growth. [2] X Research source

Be aware that even the best statistical analysis sometimes overlooks basic managerial problems that can only be solved by the company’s leadership.

If your competitors are publicly-traded companies, you will be able to find the figures you need in their annual reports, which by law must be posted on their websites. You may be able to find what you need in press reports, trade publications, or media coverage regarding your competitors. [4] X Research source When calculating performance ratios, be sure to compare them to industry averages, provided you are able to find them. Try searching online for research in your industry. [5] X Research source

Customer value is often measured as customer lifetime value (CLV). This figure is calculated by multiplying the average sale value by the number of repeat transactions and then multiplying that total by the average retention time of each customer. [6] X Research source The result of the CLV calculation should be regularly recorded and businesses should seek to increase it often time. This can be measured by customer surveys, purchase analysis, or by immediate feedback (“is this your first time shopping with us?”). Systems need to be implemented to measure these variables. [7] X Research source

The CAGR equation is as follows: CAGR = final value divided by starting value times 1 over number of periods less 1 or (FV/SV)1/n-1. The beginning value here would be revenue in the first year in the range being calculated and ending value would be revenue in the last. For a longer explanation of how to calculate CAGR, see how to calculate compounded annual growth rate.

Growth can be determined by calculating the company’s market share in several different periods and looking for growth or shrinkage in that company’s share of the market. [9] X Research source For example, if you are researching a company in a $1 billion market and that company had revenues of $150 million in 2014 (15 percent of the market) and $170 million in 2015 (17 percent of the market), their market share has increased 2 percent in the past year.

To calculate book value: add up the company’s assets, including current assets, fixed assets, and debts owed to the company, and then subtract liabilities, like unpaid bills and loan balances outstanding.

The information needed to calculate market cap can be found in the company’s annual report and on any stock-trading or stock market news website. For more on market cap, see calculate the market value of a company.

Discounted cash flow analysis involves projecting future free cash flows for an investment or company. These cash flows are then “discounted” back to the present at a set discount rate. This discount rate reflects the time value of money (reflects the idea that an amount of money today is worth more than that same amount of money in the future). The discounted cash flows are then compared to the present cost of the investment to determine whether or not that investment is a good one. [11] X Research source

For more on calculating the PE ratio, see how to calculate the PE ratio.

Look for this metric to improve over time as the company streamlines its production process.

To calculate CAGR for profits, see calculate CAGR.

For examples, sales productivity is calculated as the company’s revenue divided by the number of salespeople.

A reduction in this cost is evidence that you are building a recognized brand. It also can show you if you are overspending on sales and marketing (if additional spending in these areas fails to bring a similar increase in new customers). [16] X Research source