Sales growth shows the increase in sales over a specific period of time.
The CAGR formula is the following: (current year's value / value 3 years ago) ^ (1/3) - 1
NOTE: If the starting year's figure is zero, the CAGR is not defined.
Sales growth is important because it suggests that demand for a company's products or services will be sustained or increasing in the future.
Growth rates differ by industry and company size. Sales growth of 5-10% is usually considered good for large-cap companies, while for mid-cap and small-cap companies, sales growth of over 10% is more achievable.
It is important to distinguish however between organic sales growth and acquisitive growth, as the former is more sustainable.