How Fast Is It Growing? · Intermediate · Pro filter
PAT CAGR acceleration (5Y vs 10Y): what it means and how to read it
5-year profit growth minus 10-year profit growth. Positive means profits are growing faster lately than over the decade.
What is PAT CAGR acceleration (5Y vs 10Y)?
5-year profit growth minus 10-year profit growth. Positive means profits are growing faster lately than over the decade.
A worked example
Profit growth of 20% a year over five years and 12% over ten gives +8: the recent years were faster. −8 would mean growth is fading.
Why does PAT CAGR acceleration (5Y vs 10Y) matter?
Spots businesses that are speeding up.
How do you read PAT CAGR acceleration (5Y vs 10Y)?
Positive means accelerating.
Higher is usually better.