What is CAGR (compound annual growth rate)?

CAGR is the steady yearly growth rate that takes a figure from its starting value to its ending value over a number of years.

Revenue that doubles over five years has a CAGR of about 14.9%, whatever happened in between. CAGR can only be calculated when both the start and end values are positive.

Formula

CAGR = (end value ÷ start value)^(1 ÷ years) − 1

CAGR (compound annual growth rate) on the Pakistan Stock Exchange

Across 428 listed companies with the figure, the median is 13.9%.

CAGR (compound annual growth rate) of the largest PSX companies
Largest companies	CAGR (compound annual growth rate)
OGDC Oil & Gas Development Company Limited	13.4%
UBL United Bank Limited	34.6%
MEBL Meezan Bank Limited	30.8%
FFC Fauji Fertilizer Company Limited	36.3%
MARI Mari Energies Limited	21.3%