Compound annual growth rate (CAGR) - explained

The compound annual growth rate is a business and investing specific term for the smoothed annualised gain of an investment over a given time period. CAGR is not an accounting term, but remains widely used, particularly in growth industries or to compare the growth rates of two investments. CAGR is often used to describe the growth over a period of time of some element of the business, for example revenue and units delivered. Reference: - created