CAGR


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Related to CAGR: IRR

CAGR

Compound Annual Return

The average year-on-year growth rate of an investment over a number of years. While investments usually do not grow at a constant rate, the compound annual return smoothes out returns by assuming constant growth. This makes accounting for the investment tidier. It is calculated as:

Compound annual return = (Ending Value / Beginning Value)^((1 / n) - 1) where n is the length of time of the investment in years. It is also called the compound annual growth rate. See also: Average Annual Growth Rate.
References in periodicals archive ?
1 per cent of the total operating factories (a five-year CAGR of five.
9m in 2006, showing a CAGR of almost 19pc, while the investment portfolio of Bahraini insurance firms increased from BD352.
9 million in 2006, showing a CAGR of almost 19 per cent, while the investment portfolio of Bahraini insurance firms increased from BD352.
The growth rate will remain very similar from 2010 to 2015, with a CAGR of 6.
The highest CAGR for 2004-06 for R&D spending belonged to Mittal Steel, which increased R&D expenditures by 90.
Meat and fish cold storage market in India has largest revenue share of entire cold storage market in India and is expected to grow at a CAGR rate of 9% in the next 5 years.
ERP market growth will slow, growing at only a five percent CAGR from $16.
The prepaid card category posted the highest growth during the review period and grew at a CAGR of 9.
9 percent CAGR and reaching $723 billion by 2019, from $568 billion in 2014.
The market research report, published this week, forecasts that the Tequila sector will grow by a CAGR of 2.
Healthcare will be the fastest-growing industry, increasing its spending at a CAGR near 48 percent.
While the white rum category was virtually flat between 2008 and 2013, recording a CAGR of -0.