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CAGR (Compound Annual Growth Rate)

Formula: (Ending/Beginning)^(1/n) − 1

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Fundamental

CAGR (Compound Annual Growth Rate)

Formula: (Ending/Beginning)^(1/n) − 1

Definition

CAGR measures the smoothed annual growth rate of an investment over a specified period, assuming reinvestment of profits. It provides a more accurate picture of long-term growth than simple average returns. CAGR is widely used in business valuation and investment analysis.

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#growth rate #compounding #investment returns #valuation

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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