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How to Calculate Percentage Increase of a Stock Value

Original post by C. Taylor of Demand Media

Offering a dollar value when describing a stock's increase in value is meaningless without a reference point. As an example, stating a stock increased by \$10 offers no real insight into its growth, because you don't know its starting value. If the stock was originally \$500, that \$10 increase is no big deal, but if it was originally a dollar stock, then that growth is significant. A better way to describe growth is using percentages, which tells you the amount of growth relative to its initial value.

Contents

Step 1

Subtract the stock's original value from its current value. As an example, if you the stock was originally trading at \$50 per share, and three weeks later it traded for \$60 per share, you would calculate the difference of \$10.

Step 2

Divide this difference by the original value. Continuing this example, dividing \$10 by \$50 gives you 0.20.

Step 3

Multiply by 100 to convert the figure into percentage format. In this example, this gives you a 20 percent increase.

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