Growth

What is CAGR (Compound Annual Growth Rate)?

CAGR is the annualized growth rate that smooths out yearly fluctuations, showing the steady rate at which a value would have grown to reach an end value.

Formula

CAGR = (End Value / Start Value)^(1/Years) - 1

How to Interpret

CAGR is the standard way to express growth over multiple years. In US large-caps, revenue CAGR above 10% for 5+ years is strong; in faster-growing international markets like India, the bar is closer to 15%.

Typical Ranges

US: Revenue CAGR >10% is strong, >20% is exceptional (S&P 500 averages 5–7%). Or international markets like India: >15% strong, >25% exceptional.

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter US or Indian stocks by CAGR.