---
title: "Definition of 5Y CAGR"
url: https://signalscreener.fr/definition/growth-5y/
markdown_url: https://signalscreener.fr/definition/growth-5y.md
description: "The compound annual growth rate over 5 years, showing smooth annualized growth for various metrics like revenue, earnings, or FCF."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "5Y CAGR"
  - "5-Year Growth (CAGR)"
translations:
  de: https://signalscreener.fr/de/definition/growth-5y.md
  it: https://signalscreener.fr/it/definition/growth-5y.md
  pt: https://signalscreener.fr/pt/definition/growth-5y.md
---

# 5-Year Growth (CAGR)

## What is 5Y CAGR?

The compound annual growth rate over 5 years, showing smooth annualized growth for various metrics like revenue, earnings, or FCF.

## Think of it like this

Like measuring your average annual salary increase over 5 years - smooths out the bumps to show the trend.

## Formula

```
CAGR = (Ending Value ÷ Beginning Value)^(1/5) - 1
```

- **Ending Value**: Most recent year's figure
- **Beginning Value**: Figure from 5 years ago
- **CAGR**: Compound Annual Growth Rate

## Why it matters

- Shows sustainable growth trajectory
- More meaningful than single year growth
- Helps project future potential
- Smooths out volatility

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| > 15% | High Growth | Exceptional growth trajectory |
| 8-15% | Strong | Above-market growth |
| 3-8% | Moderate | Steady, sustainable growth |
| < 3% | Low | Slow growth or mature business |

## Real-world example

Amazon maintained 20%+ revenue CAGR for decades before slowing in recent years.

---

This is educational content, not financial advice.

Source: [Definition of 5Y CAGR](https://signalscreener.fr/definition/growth-5y/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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