Page Updated on September 20, 2026
Overview
The 3-Year Revenue Compound Annual Growth Rate (CAGR) measures the annualized rate at which a company’s revenue has grown or declined over the most recent three-year period.
Unlike a single-year revenue growth measurement, the 3-Year Revenue CAGR provides a longer-term view of revenue growth by smoothing the change across three annual growth intervals.
The 3-Year Revenue CAGR contributes a maximum of 10 points to the ZuseScore.
Formula
The result is expressed as a percentage.
StockZuse uses four annual revenue observations. The newest and oldest observations represent three annual growth intervals.
How StockZuse Uses the Metric
The metric is included in the Business Quality component of the ZuseScore.
StockZuse uses the 3-Year Revenue CAGR to measure whether revenue growth has been sustained over a multi-year period rather than relying only on the company’s most recent annual growth rate.
ZuseScore Point System
| 3-Year Revenue CAGR | Points |
|---|---|
| 10% or more | 10 / 10 |
| 7% to less than 10% | 8 / 10 |
| 4% to less than 7% | 6 / 10 |
| 1% to less than 4% | 4 / 10 |
| 0% to less than 1% | 2 / 10 |
| Below 0% | 0 / 10 |
If sufficient annual revenue history is unavailable, the metric is not scored. Under the ZuseScore methodology, an unavailable metric reduces the possible-point denominator rather than receiving zero points.
Interpreting the Metric
A positive CAGR indicates that revenue increased over the three-year measurement period, while a negative CAGR indicates that revenue declined.
Because CAGR represents an annualized rate, it does not show how evenly revenue changed from year to year. Two companies can have the same 3-Year Revenue CAGR while having substantially different annual growth patterns.
Considerations and Limitations
The metric measures revenue growth, not profitability, cash generation, financial leverage, or valuation. Revenue can grow while other aspects of a company’s financial performance weaken.
CAGR also summarizes the beginning and ending revenue values into a single annualized growth rate. Consequently, significant fluctuations occurring between those endpoints may not be apparent from the CAGR alone.
StockZuse evaluates these and other aspects of company performance through the other metrics included in the ZuseScore.
Data Used
StockZuse uses annual revenue data from company financial information obtained through SEC filings.
The calculation requires sufficient annual revenue history to identify:
Latest Revenue — the most recent annual revenue observation.
Starting Revenue — the annual revenue observation at the beginning of the three-year measurement period.
Growth Period — three annual growth intervals.
Related Methodology
For information about how this metric combines with the other ZuseScore metrics, see ZuseScore Methodology.