Formula
FCF CAGR (5Y) = (FCFₜ / FCFₜ₋₅)^(1/5) - 1
How to Interpret
FCF CAGR (5Y) is the compound annual growth rate of Free Cash Flow over the last five years. It highlights whether the company is growing its cash generation, not just its accounting earnings. Strong FCF growth supports dividend growth, buybacks, and reinvestment.