Sell-through rate (STR)

Why it matters

Sell-through rate tells an investor whether a portfolio can cover its renewal costs. Many investors cite rates of around 1% to 2% for decent names, though this is a rough, informal figure. A small change matters. Raising the rate from 1% to 1.5% on 1,000 names adds about five sales a year. A common mistake is judging a portfolio only by its names and ignoring the rate. A high rate with low prices can still lose money, and a low rate with big prices can win. Compare STR with average sale price and carrying costs together.

Source: namecheap.com