The Compound Annual Growth Rate (CAGR) is a measure of growth. In particular, it measures the growth rate of a certain asset or investment (or anything that can fluctuate in value), over time (at least 3 to 5 years) while taking into account the overall compound growth. CAGR is used to evaluate and compare past performance of investments, but also to project how much their return will be in future.
August 24, 2020