What does CAGR stand for?

What does CAGR stand for? Rank Abbr. Meaning CAGR Compound Annual Growth Rate (investing) CAGR Compound Annual Growth Rate CAGR Casa Grande Ruins National Monument (US ... CAGR Cumulative Average Growth Rate (less com ... 3 more rows ...

Is a higher CAGR better than a lower CAGR?

For example, if a company grew by 25% in an industry with an average CAGR closer to 30%, then its results might seem lackluster by comparison. But if the industry-wide growth rates were lower, such as 10% or 15%, then its CAGR might be very impressive. In general, a higher CAGR is better.

What is compound annual growth rate (CAGR)?

What Is the Compound Annual Growth Rate (CAGR)? The compound annual growth rate (CAGR) is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each period of the investment’s life span.

What does a 10% CAGR mean?

A 10% CAGR means that an investment generates an average of 10% return over the period of time that you’re evaluating. If you’re analyzing an investment over a 5 year period, then you are generating 10% on average per year for five years.