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
- 3 Reasons to Invest in This Auto Infotainment Market Leader
- Why Shares of Omega Protein Skyrocketed
- Why Priceline Group's Stock Is Up More Than 37% in the Past Year
- 2 Stocks That Have Survived the Demise of Traditional Media Advertising
- Is Caterpillar Adding Value to its Shareholders?
- The General Electric-Alstom Deal Could Create the World's Largest Rail Equipment Maker