The Growth Index (ICF): growing at a reasonable price

The ICF (Growth Index) is STKtracker’s grade for a company’s momentum: how fast its revenue and earnings grow and —crucially— whether that growth comes at a reasonable price. Growing fast is worthless if you overpay for it; the ICF tries to capture exactly that balance.

What goes into the ICF

The ICF weighs growth and valuation together. These are its ingredients, ordered by importance within the index.

• PEG ratio — the highest-importance factor: relates price to expected earnings growth.
• Revenue growth — high importance: the engine of any expanding business.
• 3-year EPS CAGR, estimated EPS growth, quarterly EPS growth, gross margin and estimate revisions — medium importance: they shape the quality and sustainability of the growth.
• Forward P/E and beta — complementary importance: context on valuation and volatility.

How to interpret the grade

A high ICF flags a company growing strongly without its price having run up too far. A low grade may reflect weak growth or a valuation too demanding for what it delivers. Like any growth metric, the ICF is more reliable in predictable businesses than in cyclicals, where earnings swing sharply year to year.

The ICF does not reveal exact weights or formulas: it is a lens to rank growth candidates, not a prediction. Always read it alongside the sector and the Health (ISF) and Quality (ICE) indices.