Niche question but have seen three different ways people seem to model 2 year growth stack. Let’s say ‘x’ is this year’s / quarter’s growth and (y) is last year’s / quarter’s
(1): x + y
(2): (1+x)*(1+y) -1
(3): (1+x)*(1+y)^(1/2) -1
Which is right? I get that (1) is a short hand people use but am confused between (2) and (3), (3) seems to be trying to do some kind of CAGR formula but just seems wrong?
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