Growth Volatility
How much your growth rate bounces around — predictability, which markets reward on its own.
What is it?
Growth Volatility measures how much your growth rate bounces around — the standard deviation of the MRR growth rate across recent periods. A business can hit the same average growth two very different ways: steadily, or in violent swings, and volatility separates them.
Predictability is valuable in its own right. Low, stable growth is easier to plan, staff and finance than the same average delivered in spikes, and markets reward the durability that low volatility signals.
How to calculate?
Compute the standard deviation of the monthly growth rate over a trailing window — commonly the current and two prior buckets. A smaller number means tighter, more predictable growth. The window length sets how quickly it responds, so keep it fixed.
Read it beside growth acceleration: acceleration tells you which way growth is turning, volatility tells you how reliable that trend is in the first place.