Skip to main content
GrowthSGA/Rev#86

Revenue Growth 1Y

Share:

Revenue Growth 1Y measures the rate at which the business is expanding. Value investors to size durable revenue and free cash flow expansion when Revenue Growth 1Y aligns with the rest of the VMC.

Javier Sanz, Founder & Lead Analyst at ValueMarkers
By , Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz

Formula

Selling, General & Administrative Expenses / Revenue x 100

Description

Measures the overhead cost burden relative to revenue. Lower ratios indicate better cost control and operational efficiency. Warren Buffett has noted that companies with consistently low SGA ratios tend to have durable competitive advantages.

Interpretation

Below 30% is generally efficient. Declining SGA/Revenue over time indicates improving operating leverage. Very low ratios (below 10%) are common in businesses with network effects or economies of scale. Rising SGA/Revenue without corresponding revenue growth is concerning.

Related metrics: Revenue CAGR 3Y, Revenue CAGR 5Y. (Updated 2026)

Log in to screen for Revenue Growth 1Y

Further Reading

FAQ

How is Revenue Growth 1Y calculated?+
Revenue Growth 1Y uses the formula: Selling, General & Administrative Expenses / Revenue x 100. S&P 500 median revenue growth is near 6%. ValueMarkers refreshes the calculation within 24 hours of each new SEC filing using Multi-year SEC filings + Damodaran growth-rate datasets.
What is a good Revenue Growth 1Y value by sector?+
There is no single 'good' value for Revenue Growth 1Y — context is sector-driven. S&P 500 median revenue growth is near 6%. The /screener exposes sector-relative percentiles for Revenue Growth 1Y on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Revenue Growth 1Y?+
Peter Lynch, Philip Fisher, Bill Miller cite Revenue Growth 1Y as a key input to to size durable revenue and free cash flow expansion. The academic anchor is Mauboussin's 'measuring the moat' framework. ValueMarkers weights this within the Growth pillar of the VMCI score (12% of total).
What are the limitations of Revenue Growth 1Y?+
Revenue Growth 1Y can mislead in high growth at unsustainable unit economics (cash-burn traps). Pair Revenue Growth 1Y with at least two cross-checks from other VMCI pillars — for example, free cash flow trend, balance-sheet quality, and earnings consistency — before drawing a single-metric conclusion.
Where can I see live Revenue Growth 1Y data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Revenue Growth 1Y data, sector percentiles, and the VMCI composite score that integrates Revenue Growth 1Y with 119 other indicators across 100,000+ stocks. The free /screener exposes Revenue Growth 1Y as a filterable column.

Used in these guides

Related Growth Indicators

Share:

Explore More

Popular Stocks

Browse ETFs

Dividend Stocks

Compare Competitors

Learn

Investing Tools

Browse Stocks

Weekly Stock Analysis - Free

5 undervalued stocks, fully modeled. Every Monday. No spam.

Cookie Preferences

We use cookies to analyze site usage and improve your experience. You can accept all, reject all, or customize your preferences.