It helps investors to know if the company is stable and profitable for investment.
If you are into financial analysis or planning Financial Analysis Or Planning Financial planning and analysis (FP&A) is budgeting, analyzing, and forecasting the financial data to align with its financial objectives and support its strategic decisions. CAGR Formula in Excel (Compound Annual Growth Rate)ĬAGR formula in Excel is the function that is responsible for returning CAGR value, i.e., the Compound Annual Growth Rate value from the supplied set of values.
CAGR or compound annual growth rate is method to calculate the growth rate of a particular amount annually, by default we do not have any inbuilt formula in excel to calculate CAGR for us, instead we make categories in tables and in tables we apply the following formula to calculate CAGR which is as follows, (Ending Balance/Starting Balance)˄(1/Number of Years) – 1.
