Frequently Asked Questions

Pricing Power

Pricing Power refers to a company's ability to raise the price of its products or services without affecting the demand of that product. The stronger a company's pricing power, the more likely they can raise prices in inflationary environments.

Vuru assesses a company's pricing power by looking at the size and consistency of their Gross Profit Margins over the past 10 years. If a company is able to consistently deliver high Gross Margins, it implies that the company is able to raise prices without affecting demand.

Gross Profit Margin = Gross Profit / Revenue x 100%