What does CAGR mean in General Business?

This page is about the meanings of the acronym/abbreviation/shorthand CAGR in the Business field in general and in the General Business terminology in particular.

Compound Annual Growth Rate

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Definition

What does CAGR mean?

Compound annual growth rate
Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. CAGR is not an accounting term, but it is often used to describe some element of the business, for example revenue, units delivered, registered users, etc. CAGR dampens the effect of volatility of periodic returns that can render arithmetic means irrelevant. It is particularly useful to compare growth rates from various data sets of common domain such as revenue growth of companies in the same industry or sector.CAGR is equivalent to the more generic exponential growth rate when the exponential growth interval is one year.

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"CAGR." Abbreviations.com. STANDS4 LLC, 2021. Web. 5 Mar. 2021. <https://www.abbreviations.com/term/303851>.

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