How it's calculated
CAGR = (End ÷ Start)^(1 ÷ n) − 1
End = ending value, Start = starting value, n = number of years held. Gives the constant yearly growth rate; doubling time = ln 2 ÷ ln(1 + CAGR).
Common questions
What does CAGR actually tell me?
It is the steady yearly growth rate that would take you from the start value to the end value over the period, smoothing out the ups and downs along the way.
How is CAGR calculated?
CAGR equals (ending value / beginning value) raised to the power of 1 divided by the number of years, minus 1.