|
The compound annual growth rate (CAGR) is the annual return that, if earned for a specified number of years (N), would grow an initial value of V into a final value F. It’s simply (F/V)^(1/N)-1.
For example, if you bought a share of AMZN in Jan 2005 for $18, and sold it Jan 2025 for $235, you earned a CAGR of 13.7%.
Related Links
Calculation of CAGR
Wikipedia article on CAGR
| 
