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Pankaj
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CAGR Calculation - Example 2
If net profit for year 2000 is 200 million and for year 2004 is 400 million, then what will be the CAGR?
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John
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Calculate CAGR Example 2
(400/200)^(1/4) - 1 = (2)^(0,25) - 1 = 1,18 - 1 = 0,18
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Nagaraj.B.R
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CAGR Example 2
OK, I agree with John
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Shafiqul Huq Shajal
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CAGR Example 2b
If so the CAGR is 18% then what will be the expected sales for 2014. Is there any formula to forecast the future sales?
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Roel Villanueva
Accountant, Philippines
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Formula to Forecast Future Sales Based on CAGR (Example 2b)
Using 2004 net profit of 400m as base, we can project the expected sales for 2014 as follows:
400 * (1+.189207)^10 = 2262.74m.
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