InvestorWords.com

Compound Annual Growth Rate


Definition

CAGR. The year over year growth rate applied to an investment or other part of a company's activities over a multiple-year period. One of the benefits of CAGR over other calculations is that it decrease the effects of volatility. The formula for calculating CAGR is (Current Value/Base Value)^(1/# of years) - 1.


Related Videos




Search for another term


Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z