Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,725,775,013 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Compound Growth Rate

   Also found in: Acronyms 0.01 sec.
Compound growth rate
See: Compound Annual Growth Rate
compound growth rate
The percentage rate, generally stated on an annual basis, at which a variable grows adjusted for compounding. For example, a 7% compound growth rate for ten years results in $100 growing to slightly less than $200. Without compounding, the $100 would earn $7 per year and grow to only $170. Financial analysts frequently use historical and projected compound growth rates in analyzing earnings, sales, and dividends.
Compound Growth Rate
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 growth rate smoothes out returns by assuming constant growth. This makes accounting for the investment tidier. It is calculated as:

CAGR = (Ending Value / Beginning Value)^((1 / n) - 1) where n is the length of time of the investment in years. It is also called a compound annual growth rate. See also: Average Annual Growth Rate.


How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
This is a very active residential real estate market and based on the compound growth rate of almost 8% over the past seven years, the trend is likely to continue.
Julia B. Fee Real Estate comes to Clintons' hometown by Real Estate Weekly
By the end of his six-year tenure in 2001 the exchange was a new place, achieving a compound growth rate of 80-plus percent, increased productivity of at least 50 percent, and 15 times as many seats on the exchange.
How To Perform a Heart Transplant and Survive Through Layoffs by SHERWOOD, SONJA / Chief Executive (U.S.)
When you hear CNBC talking about the compound growth rate of a stock they mean the exponential rate of growth over several years.
The power of compounding by Mason, Takita / Black Enterprise
More results
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2009 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.