11/12/2022 0 Comments Cagr formula excel![]() You can calculate CAGR in Excel by using any one of the following formulas: Formula 1Īnother way to calculate CAGR is by using the POWER Function: ( End Value / Beginning Value ) ^ 1/Time Period in Years – 1 Formula To Calculate CAGR in Excel To find CAGR for an investment, divide the final value of the investment by the beginning value of the investment and multiply it by 1 upon the time period minus 1. Rather, it describes the rate at which our investment might grow if it grows at the same rate every year. It should be kept in mind that CAGR only provides the annual growth rate of a company and does not reflect the risk of investment.ĬAGR doesn’t depict the actual return rate. Businesses widely use it to measure the growth of companies over time. It is the growth rate of an investment assuming reinvestment of profits at the end of each period.ĬAGR shows the annual growth rate of an investment over a period greater than 12 months. ![]() What is Compound Annual Growth Rate (CAGR)?ĬAGR stands for compound annual growth rate.
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