Computing Semi Annual CAGR

kenchesterwu · December 13, 2018, 1:41pm

Hi everyone! may i ask if how do you compute for semi annual CAGR? what will be the formula? below is a sample data that i’m looking at:

1H2017 USD1,000

2H2017 USD1,500

1H2018 USD 1,300

2H2018 USD 2,000

1H2019 USD 3,000

Many thanks!

bujay · December 13, 2018, 2:15pm

i would do it this way:

Assuming first CF starts in cell A1

CF CF CF CF CF 1000 1500 1300 2000 3000 =(B2-A2)/A2 =(C2-B2)/B2 =(D2-C2)/C2 =(E2-D2)/D2 Return 50% -13% 54% 50% =1+B5 =1+C5 =1+D5 =1+E5 1 + Return 150% 87% 154% 150% =PRODUCT(B7:E7)^1/4-1 CAGR 32% =geometric return

bujay · December 14, 2018, 3:29am

Wow - that formatting was atrocious.

the CAGR should be the nth root of the product of the n holding period returns

S2000magician · December 14, 2018, 4:06am

Or the n^th root of holding period return.