COMPOUND ANNUAL GROWTH RATE Definition

Bookmark and Share

COMPOUND ANNUAL GROWTH RATE (CAGR) is the year over year growth rate applied to an investment or other part of a companys activities over a multiple-year period. The formula for calculating CAGR is (Current Value/Base Value) ^ (1/# of years) - 1.

Learn new Accounting Terms

SYSTEMATIC RISK is the risk that is common to all risky securities and cannot be eliminated through diversification. When using the capital asset pricing model, systematic risk is measured by beta.

RELIABILITY CONCEPT is a quality of information that assures decision makers that the information represented in the financial records and financial statements captures the actual conditions and events of the reported entity.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.