Fundamental Glossary / Growth Metrics
Revenue CAGR
The compound annual growth rate of revenue over a chosen span.
Formula
(Ending revenue / starting revenue) ^ (1 / years) - 1.
What it means
Revenue CAGR is the long-run top-line rate. Three, five, and ten years are the usual windows.
Use the same consolidation and the same definition of revenue at both ends. A switch to consolidated accounts mid-span is not growth.
How to read it
A revenue CAGR above nominal GDP, with stable margins, means the company took share or sat in a faster niche. Compare it with the industry, not with a universal hurdle.
What to watch
Currency, acquisitions, and accounting changes belong in a footnote to the rate. Organic constant-currency CAGR is the version that describes the old business.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.