Growth Formula with - values

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1richrich1

I am able to compute growth between a number in one cell to a number i
another cell. Example: what is growth from 2 to 4. I use formula of:

=(EndValue/StartValue)^(1/Years)-1

However, what would the formula be to compute growth from -2 to 4? O
2 to -2?

Can anyone help? I use it on stock market to track earnings growth

Thanks.

Ric
 
The result in procent per year
=((EndValue-StartValue)/abs(StartValue/100))/years

change the 100 to 1 if you do not want %.

Regards
Bill K
 
I am able to compute growth between a number in one cell to a number in
another cell. Example: what is growth from 2 to 4. I use formula of:

=(EndValue/StartValue)^(1/Years)-1

However, what would the formula be to compute growth from -2 to 4? Or
2 to -2?

Can anyone help? I use it on stock market to track earnings growth

Thanks.

Rich
Click to expand...

There really is no satisfactory answer to your question. You do not obtain
meaningful information. I believe that mathematically it is undefined (at
least according to my PhD sister).

For example, using Bill K's formula, it would appear that:

1. With an EndValue of 4, a StartValue of 1 and a StartValue of -2
give the same result.
2. With a fixed EndValue, smaller (more negative) StartValues result
in smaller percentages.

That type of result is not useful in comparing one stock with another.


--ron
 
Thanks for the formula of:

=((EndValue-StartValue)/abs(StartValue/100))/years

change the 100 to 1 if you do not want %.

However, it doesn't work. I tried it against a variety of values an
the results are not correct.

Any other ideas
 
Thanks for the formula of:

=((EndValue-StartValue)/abs(StartValue/100))/years

change the 100 to 1 if you do not want %.

However, it doesn't work. I tried it against a variety of values and
the results are not correct.

Any other ideas?
Click to expand...


As I posted earlier, what you are looking for is, I believe, mathematically
undefined.


--ron
 
I need to agree with Ron.
My solution seemed to work in a different calculation environment,

I was a bit puzzled with your examples.
Can you give us actual numbers of the share prices the increases or
decreases and what you are calculating at the moment.

Regards
Bill K
 
I need to agree with Ron.
My solution seemed to work in a different calculation environment,

I was a bit puzzled with your examples.
Can you give us actual numbers of the share prices the increases or
decreases and what you are calculating at the moment.
Click to expand...

I'm not sure what the OP was thinking about. However, I ran into a similar
issue some years ago in trying to compare earnings, which can be negative (i.e.
a loss) from time to time.

That was when I tried to look more deeply into the meaning of percentage
increase when the starting point was a loss, and the end point a gain.


--ron
 
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