1. What is Stock Price Prediction?

Stock price prediction is the process of estimating future stock prices based on historical data and growth assumptions. This calculator uses a compound growth formula to project future prices based on a constant growth rate.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• \( Current\ Price \) — The present stock price in any currency
• \( Growth\ Rate \) — Expected annual growth rate (decimal form, e.g., 0.1 for 10%)
• \( Years \) — Time horizon for the prediction

Explanation: The formula accounts for compound growth over time, where each year's growth builds on the previous year's price.

3. Importance of Price Prediction

Details: Price prediction helps investors estimate potential returns, compare investment opportunities, and make informed decisions about buying or selling stocks.

4. Using the Calculator

Tips: Enter current price in your currency, growth rate as decimal (e.g., 0.1 for 10%), and number of years. All values must be valid (price > 0, years between 1-100).

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this prediction method?
A: This assumes constant growth, which rarely happens in reality. It's best for rough estimates and should be combined with other analysis methods.

Q2: What's a realistic growth rate?
A: Historical stock market average is about 7-10% annually, but individual stocks vary widely.

Q3: Should I use this for short-term trading?
A: No, this model is better suited for long-term investment horizons (5+ years).

Q4: What about dividends?
A: This calculator doesn't account for dividends. For total return predictions, you'd need to include dividend reinvestment.

Q5: Can I predict price declines?
A: Yes, use a negative growth rate to model potential price decreases.