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What Is Compound Average Growth Rate (CAGR)?

 

What Is Compound Average Growth Rate (CAGR)?



Compound annual increase fee (CAGR) is the charge of go back that would be required for an investment to develop from its starting stability to its finishing 
balance in case you reinvest income each yr.


What Is Compound Average Growth Rate (CAGR)


The fashionable method for compound average growth rate is:

    
    1. The compounded annual boom charge (CAGR) is one of the maximum accurate approaches to                 calculate and decide returns for something which can upward thrust or fall in value over the years.

    2. Investors can compare the CAGR of two alternatives to evaluate how well one inventory achieved         towards other shares in a peer organization or a market index.

    3. The CAGR does not mirror funding hazard.


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