CAGR stands for Compound Annual Growth Rate; it calculates the annual percentage growth over a period of time, where growth is compounded each year. CAGR is the consistent annual percentage growth required for a value to grow from the start value to the end value, assuming the increase is added to the base value each year.
In Excel, the formula can be written as:
CAGR = (EV ÷ BV) ^ (1 ÷ n) – 1
In SQL (Transact-SQL) we recreate this as:
(Power((EV/nullif(BV,0)),1.0/n) -1) as CAGR
Both return the same value and can be tested by BV * (CAGR+1)^n