Dados B3 › Glossary

Glossary

CAGR (compound annual growth rate)

The average yearly growth rate between two endpoints, as if growth were the same every year.

What it is

The average yearly growth rate between two endpoints, as if growth were the same every year. Shown on the stocks pages.

How Dados B3 calculates it

(final value ÷ initial value)^(1 ÷ years) − 1. Here, over five fiscal years. For profit and EBITDA it is only published when both endpoints are positive.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Profit of R$ 100 million reaching R$ 161 million in five years: CAGR = (1.61)^(1/5) − 1 ≈ 10% a year.

What to watch for when reading it

• It only looks at the endpoints: a down year in the middle disappears from the maths.
• A very low (or very high) starting point distorts the rate.

See also

• Revenue growth

Methodology · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.