What does Sales 5y CAGR % mean?
Sales growth shows the increase in sales over a specific period of time. The CAGR formula is the following: (current year's value / value 5 years ago) ^ (1/5) - 1
NOTE: If the starting year's figure is zero, the CAGR is not defined.
Stockopedia explains Sales 5y CAGR %...
Sales growth is important because, as an investor, you want to know that the demand for a company's products or services will be increasing in the future.
It is important to distinguish however between organic sales growth and acquisitive growth. Growth rates differ by industry and company size. Sales growth of 5-10% is usually considered good for large-cap companies, while for mid-cap and small-cap companies, sales growth of over 10% is more achievable.
