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Concept8 min read

Compound Annual Growth Rate (CAGR)

CAGR is the constant annual rate at which an investment or metric would have grown if it compounded steadily over a period. It smooths out year-to-year volatility into a single comparable growth number.

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What's inside

  • Definition
  • Why it matters
  • Formula
  • Units & benchmarks
  • Key levers
  • Where it shows up in cases
  • How it's charted
  • Worked example
  • Common traps
  • Industry nuances

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