CAGR — Compound Annual Growth Rate
Definition: The mean annual growth rate of an investment over a specified time period longer than one year.
Example
In board meetings, you'll often hear something like: "Let's pull the latest CAGR numbers before we make a call" — shorthand for compound annual growth rate.
When you'll hear it
CAGR shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to compound annual growth rate — and they expect the room to already know what that means.
FAQs
What does CAGR stand for?
CAGR stands for Compound Annual Growth Rate.
What does CAGR mean in business and finance?
The mean annual growth rate of an investment over a specified time period longer than one year.
Where will I hear CAGR used at work?
CAGR comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for compound annual growth rate, so people assume you already know the term.