CAGR is a financial indicator showing the annual growth rate of investments. To show a little more, it shows the change from the value of an investment you made years ago to its present value. For example, let's say you bought a firm's share 5 years ago and think that you have invested $ 1000 in total. Now let's assume that the shares are at $ 2250. In this case, CAGR, that is, Annual Compound Growth Rate will be 17.61%. The important point here is that there can be no growth at this rate every year. There may even be a decline in some periods, but when we evaluate the difference between the start and end point, we get an average rate. And this rate is called Compound Annual Growth Rate (CAGR).