Finance - Measure
CAGR
(Compound annual growth rate)
The average yearly growth rate of something over a period of more than one year
What's it for?
Used to compare how investments, revenue or other values have grown over several years
For example…
Revenue rises from £10m to £15m over five years, giving a CAGR of about 8.4%
Think of it like…
A hill climbed at a steady average gradient, even though some sections are steeper than others