CAGR

CAGR or Compound Annual Growth Rate is the mean annual growth rate of an investment, portfolio, business, or market over a specified period of time.

It assumes that growth happens at a steady rate and that profits are reinvested at the end of each year.

CAGR provides a smoothed rate of return, eliminating the volatility, intermediate cash flows (dividends or withdrawals), and fluctuations that can occur year-to-year.