How Fast Is It Growing? · Intermediate · Pro filter
PAT CAGR (5Y): what it means and how to read it
How fast profit after tax grew each year, on average, over the last 5 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
What is PAT CAGR (5Y)?
How fast profit after tax grew each year, on average, over the last 5 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
A worked example
Profit going from ₹50 Cr to ₹100 Cr in 5 years is about 15% CAGR.
Why does PAT CAGR (5Y) matter?
Shows the recent pace of the business.
How do you read PAT CAGR (5Y)?
Compare it with long-run inflation of around 5% to 6% a year, and with the sector. Check that sales and profit grow together.
Higher is usually better.