EBITDA Growth 5 Year CAGR
Returns the five-year Compound Annual Growth Rate (CAGR) of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for a company.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Formula
CAGR = (Ending EBITDA / Beginning EBITDA)^(1/5) - 1
Why EBITDA Growth?
EBITDA growth shows operational profit growth independent of:
- Capital structure (interest)
- Tax strategies
- Accounting methods (depreciation)
Interpretation
| CAGR Level | Interpretation |
|---|---|
| > 15% | Strong operational growth |
| 10-15% | Healthy growth |
| 5-10% | Moderate growth |
| < 5% | Slow or flat |
Notes
- Returns value as a decimal (0.15 = 15%)
- Better for comparing companies with different capital structures
- Useful for cash flow analysis
Syntax
=EBITDAGrowthFiveYearCAGR(Symbol)Returns
Five-year EBITDA CAGR as a decimal
Examples
=EBITDAGrowthFiveYearCAGR("MSFT")=EBITDAGrowthFiveYearCAGR("AAPL")=EBITDAGrowthFiveYearCAGR("AMZN")=EBITDAGrowthFiveYearCAGR("MSFT")*100When to Use
- Evaluate operational profit growth
- Compare companies with different debt levels
- Cash flow-focused analysis
- M&A valuation work
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Revenue growth | RevenueGrowthFiveYearCAGR() |
| Net income growth | NetIncomeGrowthFiveYearCAGR() |
| Current EBITDA | EBITDA() |
| EBITDA margin | EBITDAMarginFiveYearAverage() |
Common Issues & FAQ
Why is the value less than 1?
CAGR is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.15 = 15%).
What if EBITDA was negative in some years?
CAGR calculation may return N/A or be unreliable when EBITDA is negative at start or end of period.
Why use EBITDA growth vs revenue growth?
EBITDA growth shows profitability improvement, while revenue growth just shows top-line expansion. A company can grow revenue while EBITDA shrinks if margins deteriorate.
Related Formulas
More MarketXLS Growth formulas you can use in the same worksheet:
- EBITDA Margin (1-Year Growth)
- EPS (1-Year Growth)
- EPS Average Growth (4Q)
- EPS CAGR 3 Year
- EPS CAGR Growth (4Y)
- EPS CAGR Growth (5Y)
- Free Cash Flow (1-Year Growth)
- Free Cash Flow Per Share (Past 12 Months)
See EBITDAGrowthFiveYearCAGR used in a complete workbook: EBITDA Formula in Excel: A Key Tool for Advanced Traders (2025 Guide)
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