1. What is the Stock Prediction Formula?

The stock prediction formula estimates future price based on current price and expected return. It provides a simple linear projection of potential future value.

2. How Does the Calculator Work?

The calculator uses the prediction formula:

Where:

• \( \text{Current Price} \) — Current stock price in USD
• \( \text{Expected Return} \) — Expected return as decimal (e.g., 0.05 for 5%)

Explanation: The formula calculates the compounded future value based on a single-period return assumption.

3. Importance of Price Prediction

Details: While simple, this calculation helps investors estimate potential future values and compare investment opportunities.

4. Using the Calculator

Tips: Enter current price in USD and expected return as decimal (5% = 0.05). The calculator will show the predicted future price.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this prediction?
A: This is a simple linear projection and doesn't account for volatility, compounding over multiple periods, or other market factors.

Q2: What time period does this assume?
A: The formula assumes the return applies to a single period. For annual returns, the result would be the predicted price in one year.

Q3: Should I use this for investment decisions?
A: This is a basic calculation. Always consult with a financial advisor and consider more sophisticated models for actual investment decisions.

Q4: Can I predict multiple periods?
A: For multiple periods, you would need to compound the returns: Current × (1 + return)^periods.

Q5: What about dividends?
A: This simple model doesn't account for dividends. For total return predictions, include expected dividend yields in your return calculation.