what is cagr mean
CAGR (for Compound Annual Growth Rate) is the hypothetical constant interest rate that would be required for compound interest to turn a given present value into a given future value in a given amount of time. The CAGR formula is. where PV and FV are the present value and future value, and Y is number of years.
Compound Annual Growth Rate (CAGR) The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.