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Whitepaper: Great Expectations: Forecasting Sales Growth

by InvestopediaJan 01, 2008

Predicting a company’s top line growth is arguably the most important part of determining its stock growth. A company’s market share can also have a big impact on its future sales growth. Pricing of products and services can have a big impact on sales revenue growth. If a company increases its prices and manages to maintain unit sales volume, then sales revenue will grow. On the other hand, higher prices can lead to fewer units sold if customers turn to less expensive alternatives. The effect of prices on sales revenue all depends on the company’s pricing power.