How it is worked out
(End value over start value) to the power of 1 over the years, less 1.
How to read it
- It smooths good and bad years, but it depends a lot on the first and last year chosen.
- Over a few years, or from a loss year, it means little, so it is not computed then.
Example
From 100 to 161 in five years: about 10% a year.