Forum Archive Index - March 2001

["John H T Wilkinson" <jhtw@clear.net.nz>]

Title: Calculating growth rates

Hi David,

 

I have my portfolio set up on a spreadsheet and apply the XIRR function to after tax data to show me the "Tax Paid Annual Rate of Return" on each of my investments.

 

You can hold a share, or any investment for that matter, and it can show a great "absolute" return (expressed as a % of the cost) on what it cost you - that can be misleading though.

 

The XIRR function uses "Time Value of Money" principles and gives you a figure that can be used to rate any investment against others.

 

Cheers,

JHTW

 

----- Original Message -----

From: David Hawthorne

To: 'Sharechat@sharechat.co.nz'

Sent: Thursday, 29 March 2001 11:46 a.m.

Subject: [sharechat] Calculating growth rates

Hi fellow readers,

In my quest for sharemarket knowledge, I have stumbled across a simple excel formula for calculating  growth rates.  This formula will work for any growth rate, including EPS, Total return, Sales etc.  I am happy to share this formula with you, however, before I send the formula in,  I would like to gauge interest.  Is anyone actually interested?  How many contributors / readers actually use formulas like this in making decisions, or do most ppl just purchase on a whim.  By the quality of postings, I believe most of you do a lot of research.  Therefore, has anyone else created any formulas?

I enjoyed a posting from a couple of months ago regarding how to calculate the enterprise value of a company.  (I think from Snoopy - correct me if I'm wrong).   Does anyone have any usefull links or more educational discussions to share, on how to value a company?  Keep the postings coming in!!

thx in anticipation

dave

 

The information contained in this email is privileged and confidential and intended for the addressee only. If you are not the intended recipient, you are asked to respect that confidentiality and not disclose, copy or make use of its contents. If received in error you are asked to destroy this email and contact the sender immediately. Your assistance is appreciated.