Compound Annual Growth Rate (CAGR)
Compound Annual Growth Rate (CAGR)
The year over year growth rate of a company's revenue over a specified period of time. Formula:
Example of Compound Annual Growth Rate: Company X was founded December 31st, 2012 by an Aggie leader. The revenue numbers for company X are as follows: 2015: $300,000 2016: $250,000 2017: $550,000 Company X Compound Annual Growth Rate:
Company X has a (0.354006)(100) = 35.4006% Compound Annual Growth Rate for years 2015-2017.
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