Fundamental Glossary / Growth Metrics
10-Year CAGR
A compound annual growth rate measured over ten years.
Formula
(Value now / value ten years ago) ^ (1 / 10) - 1.
What it means
Ten years is long enough for compounding to matter and for luck in a single cycle to fade. Businesses that grow over a decade have survived competition, a downturn, or both.
The data have to be adjusted for splits, bonuses, and accounting-standard changes or the per-share rate is fiction.
How to read it
A 10-year profit CAGR in the low teens, achieved without heroic leverage, is a serious record. Very high ten-year rates are rare and worth understanding before you assume they repeat.
What to watch
The company of ten years ago may have been tiny. A high rate from a small base does not promise the same rate on today's base. Size is the enemy of percentage growth.
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.