Term of the Day: Compound Annual Growth Rate

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	INVESTOPEDIA Term Of The Day October 15, 2015 Compound Annual Growth Rate - CAGR The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year. To calculate compound annual growth rate, divide the value of an investment at the end of the period in question by its value at the beginning of that period, raise the result to the power of one divided by the period length, and subtract one from the subsequent result. CAGR can also be calculated using Investopedia's own Compound Annual Growth Rate Calculator. Breaking It Down: The compound annual growth rate isn't a true return rate, but rather a representational figure. It is essentially an imaginary number that... Read More Related to "Compound Annual Growth Rate - CAGR" Growth Investing Growth investing is a strategy where an investor seeks out companies demonstrating signs of high earnings that... Read More The Effective Annual Interest Rate The effective annual interest rate is a way of restating the annual interest rate so that it takes into account the... Read More The Value of Profitability Ratios Before investing in a company, you may ask yourself: How is the company being run? Is it generating profits? Is the performance getting better... Read More Recently Added Definitions Interest Coverage Ratio A debt ratio and profitability ratio used to determine how easily a company can pay interest... Read More Receivables Turnover Ratio An accounting measure used to quantify a firm's effectiveness in extending credit and in... Read More Related Definitions Compound Interest Exponential Growth Sequential Growth Capital Growth Compound Net Annual Rate - CNAR Past Terms of the Day Present Value - PV Emergency Banking Act Of 1933 Ex Works (EXW) Letter of Intent - LOI Purchasing Power You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: