
Compound Annual Growth Rate (CAGR): Formula & What It Means
What is CAGR, and What Does It Stand For? CAGR stands for Compound Annual Growth Rate. CAGR is particularly important for long-term investors because it provides a clear picture of how an investment has grown over time, accounting for the compounding effect. For instance, if you invested $10,000 in a stock ten years ago, and …