CAGR
Compound annual growth rate: the steady yearly return that turns the starting value into the ending one.
Formula
CAGR = (Ending value ÷ Starting value)^(1 ÷ Years) − 1
How to read it
Unlike an average of yearly returns, CAGR accounts for compounding, so it is the honest single number for growth over several years.
How to use it
The fair way to compare growth over different lengths of time.
Limitations
Says nothing about the path: two investments with the same CAGR can have very different drawdowns.
In Kereon
Strategies. Final equity ÷ starting capital, compounded over the calendar span of the test (days ÷ 365.25). A test shorter than a year reports its plain return instead: compounding three good months up to a yearly rate would overstate it.
Portfolio. Growth of today's weights over their price history, with years counted as trading days ÷ 252. Not shown for less than three months of history.
Investing · price record. Over the whole price history loaded, with years counted in calendar days ÷ 365.25. CAGR % (3y) annualizes only the last 756 sessions.
Charts · Compare. Years are trading days ÷ 252; not shown for a window shorter than about a month.
Also called: cagr, cagr over the sample, annualized return, annualized return.