Thats very intriguing.
I used to select companies in the same way by looking at screener Sales CAGR, Profit CAGR, price CAGR, ROE, ROCE…but since these figure are compounding numbers, some 2-3 years good numbers make the long term average good and similarly 2-3 years bad numbers make longbterm average look bad. This will inevitably make us to choose companies with good recent performance and to avoid those companies with latest bad performance. How can we see each year’s performance independent of CAGR influence? So that we can seperate out consistent performance from one-off good performance?
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