CAGR (Compounded Annual Growth Rate)
Definition
CAGR is a metric used to measure the average annual growth rate of an investment or business over a specific period, assuming the growth is compounded each year. It provides a smoothed-out rate of return that eliminates the effects of volatility, making it easier to understand long-term growth trends.
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Translation
The number you throw around in meetings to make your growth look steady and impressive, even if it’s been more of a rollercoaster ride—because no one likes seeing the dips.