CAGR = Compound Annual Growth Rate
A business (not accounting) term showing the mean growth rate of a business metric on an annualized basis. For instance you can use it to describe revenue growth or decline for a business over several years. Or investors can use it to describe a smoothed gain or loss over a given investment period of time.
CAGR = (Ending Value) / (Beginning Value) raised to the 1 over number of years value minus 1.
Note: A CAGR is not a house party with lots of beer in big metal drums.
Related Fool Articles
- Time value of money
- Internal rate of return
- Discount rate
- Rate of return
- Compound interest
Recent Mentions on Fool.com
- Facebook Inc's Oculus Could Be Much Bigger Than You Think
- Another Cloud Purchase Could Bolster Microsoft Corporation
- Panera Bread Co. 2.0: Worth a Look for Long-Term Investors?
- Facebook, Inc's War On YouTube Is Heating Up
- Better Tech Dividend Stock: Intel Corporation or Microsoft Corporation?
- Williams Companies Could Soon Be Facing a Hostile Takeover, and That's Not a Bad Thing