Compound Annual Growth Rate (CAGR) – Definition and Pronunciation
What is CAGR?
CAGR, or Compound Annual Growth Rate, is a measure used to calculate the annual growth rate of an investment over a specified period, assuming that profits are reinvested at the end of each year. It provides a smoothed annual growth rate, making it easier to compare the performance of investments over time. CAGR is particularly useful for assessing the growth potential of investments, businesses, or financial metrics.
Examples of CAGR
Other market research sees the wireless M2M market as accounting for nearly $196 billion in annual revenue by the end of 2020, following a Compound Annual Growth Rate (CAGR) of 21 % during the 6-year period between 2014 and 2020.
From “M2M Developments and Satellite Applications”.
With a projected (combined) CAGR of around 7 % over the next few years, the number of maritime terminals is estimated to reach 650 000 by 2022-MSS terminals are still expected to account for the large majority (95 %) of terminal deployment over the next few years, and the population should grow from around 375 000 terminals in 2014 to around 619 000 terminals by 2022 (with VSATs growing from 12 500 to 31 000).
From “Maritime and Other Mobility Services”.
The total demand for TSE is forecast to grow at a CAGR of 1,75 %, taking the TSE demand level from around 5 800 TPEs in 2012 to about 7 000 in 2022; the growth will be in BRICA (Brazil, Russia, India, China, and Africa) countries, with near-zero growth in Europe and North America.
From “Exploring the Future of Satellites”.
Pronunciation of CAGR
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