Research tools

Understand the pace of growth.

Calculate a compound annual growth rate, then check what the number can—and cannot—tell you about a market.

How CAGR is calculated

CAGR = ((ending value ÷ starting value) raised to (1 ÷ years) − 1) × 100.

For an illustrative market growing from 100 to 150 over five years, CAGR is 8.45%. The total increase is 50%; the annualized rate is 8.45%. This is a mathematical example, not a GIC market estimate.

Count the intervals correctly

From the end of 2022 to the end of 2026 there are four annual intervals. Use 4, even though five calendar-year labels appear in the series. Match fiscal-year boundaries and whether values are annual totals or period-end observations.

Before comparing two forecasts

Use matching geography, products, customer groups, and revenue definitions.
Keep currency, inflation treatment, and units consistent.
Distinguish observed values from estimates and forecasts.
Inspect the annual series: CAGR smooths the path and does not reveal volatility.

Can CAGR be negative?

Yes. A positive starting value and a smaller, non-negative ending value produce a negative CAGR. An ending value of zero gives −100%. A zero or negative starting value does not support the standard CAGR calculation used here.

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