Accretion
Accretion is a gradual increase in a financial carrying amount or per-share measure, commonly used for bond discounts, obligations, and pro forma EPS.
Growth and appreciation measures distinguish asset-price gains, year-over-year changes, compound growth, and income-inclusive investment performance.
Growth and appreciation measures answer different questions: how much a price rose, how a business changed from one year to the next, or what constant yearly rate connects two values. Start with the quantity being measured and the exact period.
Appreciation covers asset values and currencies. Capital appreciation, also called price appreciation, isolates an investment’s price gain. It excludes the income included in total return.
Annual growth rate compares equivalent periods one year apart. AAGR averages the individual annual rates, while CAGR measures equivalent annual compounding between positive endpoints. These methods can produce different answers from the same history.
Accretion concerns defined changes such as a bond’s carrying amount or pro forma earnings per share; it is not interchangeable with market-price appreciation. Across these measures, distinguish new contributions from earned returns, nominal gains from purchasing-power changes, and past results from uncertain forecasts.
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Accretion is a gradual increase in a financial carrying amount or per-share measure, commonly used for bond discounts, obligations, and pro forma EPS.
Annual growth rate measures change from one year to the next; its interpretation depends on the comparison period, starting value, and cash-flow treatment.
Appreciation is a rise in an asset's market value or a currency's exchange value, distinct from investment income, inflation, and accounting depreciation.
AAGR is the arithmetic average of annual growth rates; it describes the yearly observations but does not reproduce cumulative investment growth.
Capital appreciation is an asset's increase in market value, excluding income; examples distinguish price gains, total return, sale proceeds, and leverage.
CAGR converts cumulative growth into a constant annual compound rate, but hides the path and needs cash-flow and income adjustments for investment returns.