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

Examples

=EBITDAGrowthFiveYearCAGR("MSFT")
Microsoft 5-year EBITDA CAGR
=EBITDAGrowthFiveYearCAGR("AAPL")
Apple 5-year EBITDA CAGR
=EBITDAGrowthFiveYearCAGR("AMZN")
Amazon 5-year EBITDA CAGR
=EBITDAGrowthFiveYearCAGR(A1)
Symbol from cell reference
=EBITDAGrowthFiveYearCAGR("MSFT")*100
Convert to percentage

When 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

Q: Why is the value less than 1? A: CAGR is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.15 = 15%).

Q: What if EBITDA was negative in some years? A: CAGR calculation may return N/A or be unreliable when EBITDA is negative at start or end of period.

Q: Why use EBITDA growth vs revenue growth? A: EBITDA growth shows profitability improvement, while revenue growth just shows top-line expansion. A company can grow revenue while EBITDA shrinks if margins deteriorate.

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