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CAGR

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.

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