Cagr formula: Learn how to calculate the

Learn how to calculate the compound annual growth rate ( CAGR ) in Excel using a simple formula —analyze the beginning and ending value, and the investment period. Compound Annual Growth Rate Definition Compound annual growth rate ( CAGR ) is a financial analysis metric that is used to measure the rate of return for an investment over a long period of time. CAGR assumes compounding or the reinvestment of profits into the original asset. In simple words, CAGR provides you with the investment's value if it produced steady annual returns and if all profits were reinvested back into the original asset for the duration of the investment. CAGR Formula The ... Master the CAGR formula and learn how to calculate compound annual growth Rate with this comprehensive guide. Get practical examples for financial analysis. What Can CAGR Tell You? Over a certain period, the Compound Annual Growth Rate ( CAGR ) can offer important insights into how a business or investment performs. Key information that CAGR can provide is as follows, 1. Annual Growth on Average: The compound annual growth rate ( CAGR ) of an investment over a given period is indicated. It provides a compounded, smoothed rate that, if used annually, would have the same final value. 2. Comparative Analysis: The CAGR makes it simple to compare the ...