CAGR: Difference between revisions

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Compound Annual Growth Rate.
Compound Annual Growth Rate.


Calculated from total growth over a multiple years period as:
CAGR = ( ( End amount ) / ( Starting amount ) )<sup>(1/n)</sup> - 1
Where n = number of years.
'''Example'''
Sales grow from $100m to $150m over a two-year period.
CAGR is:
= ( 150 / 100 )<sup>(1/2)</sup> - 1
= 22.5%.


== See also ==
== See also ==
* [[Compound Annual Growth Rate]]
* [[Compound interest]]
* [[Compound interest]]
* [[Extrapolation]]
* [[Geometric mean]]
* [[YOY]]
[[Category:Investment]]
[[Category:Financial_products_and_markets]]

Latest revision as of 13:13, 24 February 2019