The Compound Annual Growth Rate (CAGR)
The extended formula is the exact formula you can use on the inputs to calculate WACC. It is more verbose than the simplified formula.
CAGR = `100 * ((e / b) ^ (1 / n) - 1)`
Let’s assume that an investment is starts a value of $1000. It grows to $1500 in a span $1 years. Then, according to the formula:-