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Smart Money

Glossary

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 companiesCAGR (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%