Do you know what actually does CAGR measure? CARG is the compund rate of growth/return that your base number will grow at a steady rate across the specific time horizon.
In other words, it is roughly an average rate that takes time value of money into consideration (coz it's compound, not simple) and smooths out all the ups and downs (as it's an average rate).
One practical tips to you guys on using CAGR would be it's not useable when your data exists a negative number! Imagine intuitively, what will be the growth rate for this year if last year's growth is negative?
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