|
|
Compound Annual Growth Rate
|
Calculate the growth rate of an investment over a period of time. Explanation of CAGR (Compound Annual Growth Rate). |
|
|
What is CAGR? DescriptionCompound Annual Growth Rate is the average annual growth rate of an investment
over a specified period of time. Calculation of Compound Annual Growth Rate. FormulaCAGR is calculated by taking the Nth root of the total percentage growth rate where N is the Number of Years in the period being considered.
CAGR = ( ( End Value / Begin Value )(1 / N ) ) - 1
Usage of CAGR. Applications
Strengths of CAGR. Benefits
Limitations of CAGR. Disadvantages
Assumptions of Compound Annual Growth Rate. Conditions
CAGR Special Interest Group
CAGR Forum
CAGR Education & Events
Compare with CAGR: Return on Investment | Net Present Value | Discounted Cash Flow
Return to Management Hub: Finance & Investing
|
12manage for: |
|
|
|
|
| ● Jinesh (India) | Finance | "Generally we can find out the C.A.G.R. for any thing but for the company the capital remains the same through thye life time so we should go for the profit as a base because if we want to find out the actual growth we generally measure the profit of the company" | |
| ● Nitin (India) | CAGR Basis | "CAGR is taken in terms of sales not profit." |
| ● John (UK) | Calculate CAGR | "(400/200)^(1/4) - 1 = (2)^(0,25) - 1 = 1,18 - 1 = 0,18" | |
| ● (India) | CAGR | "OK" |