The growth rate of an investment shows how much its value increases over time, helping to evaluate performance. A common way to calculate this is by using the compound annual growth rate (CAGR), which ...
The Gordon model allows for the fact that the market might put a price on a stock that's different from what you might estimate using the equation above. A higher stock price than predicted implies a ...
CAGR smooths annual growth rates, showing how assets grow over specific periods without accounting for volatiliy. CAGR calculation is simpler, making it suitable for comparing diverse investments or ...