Compound Annual Growth Rate. The annualized rate of return that smooths out volatility, showing how an investment would have grown if it grew at a steady rate.
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CAGR
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Related terms
Average Price
The weighted average cost at which you purchased shares of a stock, calculated by dividing total cost by total quantity. Used for P&L calculations in UseMoney.
Beta
A measure of a stock's volatility relative to the overall market. Beta of 1 means the stock moves with the market; above 1 means more volatile; below 1 means less volatile.
Book Value
The net asset value of a company, calculated as total assets minus intangible assets and liabilities, divided by number of outstanding shares.
Debt-to-Equity Ratio
A leverage ratio calculated by dividing total debt by shareholders' equity. A lower ratio indicates less reliance on borrowed funds. Generally, below 1 is considered healthy.
Demat Account
A dematerialized account that holds shares and securities in electronic form, eliminating the need for physical certificates. Required to trade on Indian stock exchanges.
Dividend Yield
Annual dividend per share divided by the current share price, expressed as a percentage. A high yield may indicate value but could also signal a falling stock price.