1. What is the Share Price Growth Formula?

The Share Price Growth Formula calculates the future value of an investment based on compound growth over multiple periods. It's essential for investors to project potential returns on their investments.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• \( \text{Old Price} \) — Initial share price
• \( \text{Rate} \) — Growth rate per period (%)
• \( \text{Periods} \) — Number of growth periods

Explanation: The formula accounts for compound growth, where each period's growth builds on the previous period's increased value.

3. Importance of Price Projection

Details: Accurate price projection helps investors make informed decisions about buying, holding, or selling shares, and assessing potential returns.

4. Using the Calculator

Tips: Enter the initial share price, expected growth rate per period (as percentage), and number of periods. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What time period should I use?
A: The period should match your growth rate period (e.g., use 12 for monthly rates over 1 year, or 5 for annual rates over 5 years).

Q2: Does this account for dividends?
A: No, this calculates price appreciation only. For total return, you would need to include dividend reinvestment.

Q3: How accurate are these projections?
A: Projections assume constant growth rate, which rarely happens in reality. Use as an estimate, not a guarantee.

Q4: Can I use this for other investments?
A: Yes, this formula works for any investment with compound growth, though the growth rate may be harder to estimate for some assets.

Q5: What if the growth rate changes over time?
A: For variable rates, you would need to calculate each period separately with its specific rate.