Compound annual growth rate

Compound annual growth rate (CAGR) is a business, economics and investing term representing the mean annualized growth rate for compounding values over a given time period.[1][2] CAGR smoothes the effect of volatility of periodic values that can render arithmetic means less meaningful. It is particularly useful to compare growth rates of various data values, such as revenue growth of companies, or of economic values, over time.[3]

  1. ^ Mark J. P. Anson; Frank J. Fabozzi; Frank J. Jones (3 December 2010). The Handbook of Traditional and Alternative Investment Vehicles: Investment Characteristics and Strategies. John Wiley & Sons. pp. 489–. ISBN 978-1-118-00869-0.
  2. ^ root. "Compound Annual Growth Rate (CAGR) Definition | Investopedia". Investopedia. Retrieved 2016-03-04.
  3. ^ Emily Chan (27 November 2012). Harvard Business School Confidential: Secrets of Success. John Wiley & Sons. pp. 185–. ISBN 978-1-118-58344-9.

Compound annual growth rate

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