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Meaning / Definition of
Compound Annual Growth Rate
Categories: Accounting,
CAGR. The year over year growth rate applied to an investment or other part of a company's activities over a multiple-year period. One of the benefits of CAGR over other calculations is that it decrease the effects of volatility. The formula for calculating CAGR is (current value/Base Value)^(1/# of years) - 1.
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