Basis of Compound Annual Growth Rate (CAGR)

Compound Annual Growth Rate
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Prafull

Basis of Compound Annual Growth Rate (CAGR)

For a company, generally CAGR is stated. So what is normally taken as a base for that? Profits? Capital? Something else?

  Jinesh
 

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
 

CAGR Basis

CAGR is taken in terms of sales not profit.

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