What does the financial term CAGR mean?

CAGR stands for Compound Annual Growth Rate, which is a measure used to calculate the mean annual growth rate of an investment over a specified time period, assuming the investment grows at a steady rate. It is expressed as a percentage and provides a smoothed annual growth rate that eliminates the effects of volatility and fluctuations in returns. CAGR is particularly useful for comparing the growth of different investments or evaluating the performance of a particular investment over time.