Fundamental Glossary / Growth Metrics
3-Year CAGR
A compound annual growth rate measured over three years.
Formula
(Value now / value three years ago) ^ (1 / 3) - 1.
What it means
Three years is long enough to step past one odd quarter and short enough to reflect the current strategy. It is the window most screens use for a recent trend.
Apply it to whatever series you name: revenue, profit, EPS, or book value. The label alone does not say which.
How to read it
A strong 3-year CAGR beside a weak latest year means the pace is slowing. The single rate will not show that. Read the three annual changes as well.
What to watch
Three years can sit entirely inside one up-cycle. A cyclical business needs a longer window, or a comparison from trough to trough.
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.