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Geometric Return On Share Prices Over 20 Year Time Period | Rate this: (3.3/5 from 3 votes) |
Hi I am trying to work out the geometric return on 20 years worth of share prices for IPO's. However i can not work out which part of my formular is not working as I go from $100M to many gazillions $$$ at the end with an annualise geometric return of lots. So i have set this up with Spreadsheet 1:with my share prices coming in and out as they list and delist over the time period. Spreadsheet 2: calcuates the market cap on a daily basis of the active shares (so if a share is listed on a day then the market cap is included in that day total market cap). Spreadsheet 3: works out the weighting/rebalancing of the portfolio as shares list and delist. So Total amount invested x (Market cap of the share at IPO list date/Total market cap onthat day) / share price. Spreadsheet 4: Share price x weighting on that day Geometric return is 252 (trading days) x log (end value of the investment/begining value of investment (i.e. $100M)/ 5040 days to get an annualised return I can not see how a $100M increases to this large total value of investmetn at the end of 2019. Can someone please check to see if this makes sence for them as well? I am happy to send the spreadsheet but cant find how to attach it here? | ||
Posted by KylieG on |
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Rate this: (4/5 from 3 votes) The first calculation should be the daily return then you can cumulate it in a separate column if ability to redeem and reinvest (delist/list), otherwise it would be a simple additive return from one day to the next. | |
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Posted by Excel Helper on |
Rate this: (4/5 from 3 votes) | |
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Posted by Excel Helper on |
Rate this: (3/5 from 1 vote) | |
Posted by KylieG on |
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