| growth company n. A company whose rate of growth significantly exceeds that of the average in its field or the overall rate of economic growth. |
Growth Company
A company that is nearly or completely finished a period of high sales and earnings growth.
Investopedia Commentary
Since the market has already valued the company's recent growth, these stocks are often priced above or at fair value. For this reason, growth companies' stock is not always classified as growth stock. Growth stocks belong to companies that are expected to increase earnings at a rate higher than the market.
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See also: Earnings, Fair Value, Growth Stock