>CAGR stands for "Compound Annual Growth Rate." It's a metric that tells you what your portfolio will be worth after a certain number of years, assuming it grows at a consistent rate. To calculate CAGR, you take the value of your portfolio at the end of the period and divide it by the value at the beginning of the period. Then, you raise that number to the power of 1/n - where n is the number of years in question. For example, if your portfolio grew from $10,000 to $12,000 over two years, its compound annual growth rate would be:
I let’s say that if I were to invest 300,000 $ in a stock who CAGR is 57.07% , the valuation of my portfolio would be 471,210 $ (300’000 + 57.07 %) ? Thanks a lot btw
VisualMod t1_jeghlv0 wrote
>CAGR stands for "Compound Annual Growth Rate." It's a metric that tells you what your portfolio will be worth after a certain number of years, assuming it grows at a consistent rate. To calculate CAGR, you take the value of your portfolio at the end of the period and divide it by the value at the beginning of the period. Then, you raise that number to the power of 1/n - where n is the number of years in question. For example, if your portfolio grew from $10,000 to $12,000 over two years, its compound annual growth rate would be:
(12000/10000)^(1/2)-1 = 0.105 or 10.5%