what is CAGR in financial modeling

basanimaryprasanna
Posts: 1
Joined: Mon Aug 04, 2014 9:54 am

what is CAGR in financial modeling

Postby basanimaryprasanna » Mon Aug 04, 2014 10:00 am

what is the meaning of CAGR in financial modeling.

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

what is CAGR in financial modeling

Postby edupristine » Thu Aug 07, 2014 6:05 am

Usually we calculate CAGR to find out Compounded historical growth of investment. For example:- You have invested $1000(2010), and it grows to 12000 by (2011), then to $14000 by (2012) and to $15000 by (2013). So here we can calculate CAGR = (15000/10000) = 1.5= (1.5)^.33 -1 = 1.143168 -1 = .143168.
Now can say that our investment have grown up by 14.31% in three years. We use this method to measure compounded growth,


Return to “Open Source Financial Modeling”



cron

Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.