CAGR (Compound Annual Growth Rate) — The annualised growth rate over multiple years, assuming compounding. Smooths out year-to-year volatility into a single comparable number.
CAGR = (End Value / Start Value)^(1/Number of years) - 1CAGR = (End Value / Start Value)^(1/Number of years) - 1
Revenue grew from $100M to $200M over 5 years. CAGR = (200/100)^(1/5) - 1 = 14.87% per year.
Used to express 3-, 5-, and 10-year growth rates on the Growth card. CAGR is more meaningful than total growth when comparing different timeframes.
The CAGR (Compound Annual Growth Rate) metric shows up on every IndexAlpha research page. See it now on AVGO — or research any stock to view its CAGR (Compound Annual Growth Rate).
The annualised growth rate over multiple years, assuming compounding. Smooths out year-to-year volatility into a single comparable number.
CAGR = (End Value / Start Value)^(1/Number of years) - 1. Revenue grew from $100M to $200M over 5 years. CAGR = (200/100)^(1/5) - 1 = 14.87% per year.
Used to express 3-, 5-, and 10-year growth rates on the Growth card. CAGR is more meaningful than total growth when comparing different timeframes.