The Motley Fool Discussion Boards

Previous Page

Learning to Invest / Terms, Definitions, & Jargon

URL:  https://boards.fool.com/this-is-the-compounded-annual-growth-rate-if-a-20617029.aspx

Subject:  Re: A new term ? Date:  4/10/2004  3:48 AM
Author:  Byrne2000 Number:  1341 of 2244

This is the Compounded Annual Growth Rate. If a company had Sales of $10 million in 2000 and $25 million in 2004, one could say that Sales grew by a 150% or they could say it grew at a CAGR of 25.7% which is 25.7% a year for 4 years. The equation is (End Amount/Beg Amount)^(1/Years)-1 or (25/10)^(1/4)-1.
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us