Revenue CAGR 3 Year
Returns the three-year Compound Annual Growth Rate (CAGR) of revenue for a company. Provides a medium-term view of revenue growth trends.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Formula
CAGR = (Ending Revenue / Beginning Revenue)^(1/3) - 1
Interpretation
| CAGR Level | Interpretation |
|---|---|
| > 20% | High growth |
| 10-20% | Strong growth |
| 5-10% | Moderate growth |
| 0-5% | Slow growth |
| < 0% | Declining revenue |
Notes
- Returns value as a decimal (0.15 = 15%)
- 3-year horizon captures recent trends
- More recent than 5-year, less volatile than 1-year
Examples
=RevenueThreeYearCAGR("MSFT")=RevenueThreeYearCAGR("NVDA")=RevenueThreeYearCAGR("AAPL")=RevenueThreeYearCAGR(A1)=RevenueThreeYearCAGR("MSFT")*100When to Use
- Evaluate medium-term revenue trends
- Growth stock screening
- Compare recent growth across companies
- Identify accelerating/decelerating growth
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Long-term 5-year growth | RevenueGrowthFiveYearCAGR() |
| Year-over-year growth | YoYGrowth() |
| Quarter-over-quarter | QoQGrowth() |
| EPS growth | EpsThreeYearCAGR() |
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: Why use 3-year instead of 5-year? A: 3-year captures more recent trends and is less affected by older data. Useful for companies with changing growth trajectories.
Q: Can CAGR be negative? A: Yes, negative CAGR indicates revenue has declined over the period.
