By knowing a starting and ending value, you can calculate the future growth of an investment, population or any variable figure. The figure is usually quoted as a percentage, which allows easy comparison to values of a dissimilar scale. You might wish to know the growth rate of a population given present and historical data. Or maybe you wish to calculate the growth of a stock based on present earnings per share (EPS) and those estimated for a future quarter. Whatever the subject matter, the calculation remains the same.
Reference the necessary data. All you need are figures from two time frames to perform the calculation. As an example, suppose you wanted to calculate the future growth of a stock. This quarter's EPS is $0.50, and you have heard rumors that the expected EPS for the next quarter will be $0.80.
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Use the formula:
Growth = [(Future Value - Current Value) / Current Value] x 100
Plug in your data:
Future Growth = [($0.80 - $0.50) / $0.50] x 100 Future Growth = [$0.30 / $0.50] x 100 Future Growth = 0.60 x 100 Future Growth = 60%