CAGR (compound annual growth rate)
CAGR is the constant rate at which a figure would have to grow each year to move from its starting value to its ending value over the measured period. It turns an irregular path into a single comparable annual number, which is why it is the correct way to summarise a multi-year return: adding each year's percentage and dividing by the number of years is systematically wrong. What it hides is the path, and the path matters: two series with the same CAGR can have suffered very different drawdowns along the way.
Formula
CAGR = (valor final ÷ valor inicial)^(1 ÷ años) − 1 See also
See it on real data
Celsmar computes this from the accounts companies file with their regulator, and shows which line every figure comes from. Free to start, no card.
Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.