Revenue Growth 5 Year CAGR
Returns the five-year Compound Annual Growth Rate (CAGR) of revenue for a company. CAGR provides a smoothed annual growth rate that accounts for compounding.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Formula
CAGR = (Ending Value / Beginning Value)^(1/5) - 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%)
- CAGR smooths out volatility in year-to-year growth
- Better for long-term trend analysis than single-year growth
Examples
=RevenueGrowthFiveYearCAGR("AAPL")=RevenueGrowthFiveYearCAGR("MSFT")=RevenueGrowthFiveYearCAGR("NVDA")Symbol from cell reference
=RevenueGrowthFiveYearCAGR("AAPL")*100When to Use
- Evaluate long-term revenue trends
- Compare growth rates across companies
- Growth investing analysis
- Company quality assessment
When NOT to Use
| Scenario | Use Instead |
|---|---|
| 3-year revenue growth | RevenueThreeYearCAGR() |
| Year-over-year growth | YoYGrowth() |
| Quarter-over-quarter | QoQGrowth() |
| EPS growth | EpsFiveYearCAGR() |
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: Can CAGR be negative? A: Yes, negative CAGR indicates revenue has declined over the 5-year period.
Q: Why use CAGR instead of simple average? A: CAGR accounts for compounding and gives a single smoothed growth rate, while simple average can be misleading with volatile yearly growth.
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