The appreciation rate is virtually the same as the compound annual growth rate (CAGR). Thus, you take the ending value, divide by the beginning value, then take that result to 1 dividend by the number of holding periods (e.g. years). As the name might suggest, the calculation assumes that the asset will depreciate at double

By assessing patterns over multiple periods, analysts can identify emerging trends that may affect future performance. This could involve examining revenue growth rates or changes in expense structures, which can provide foresight into a company’s strategic direction and market position. It translates complex financial data into accessible information, enabling stakeholders to evaluate the financial trajectory