Stock Price Rebased To 100 Chart
- 03:54
How to rebase 2 share prices to 100 and then produce a line chart comparing the 2 companies' share prices.
Transcript
In this workout we're asked using the stock price data below, re-base the stock prices for the two companies, and then graph the results. So we've got stock prices for Ford around the kind of eight, nine figure, and then General Electric around 200. Hmm. It's a bit difficult to compare them, but if we could rebase both of them to 100, we could then see their relative performance. So what I need to do is fill in these rebased stock price columns. To do this for Ford I'll start off with the 100. I'll link up to that base number and lock on that.
I now want to multiply by Ford's starting figure and then divide it by the starting figure again. But I'm going to lock that last one.
If I now copy that down just a few cells, I can see that there rebased stock price starts to move up, up, up, up, up, up. Then back down again. Much easier for me to see the relative movements.
Let's do exactly the same for General Electric. So press equals 100, lock multiply by their starting stock price, divided by that starting stock price again, but then lock onto it and as I copy it down, I can see that the starting stock price stays locked, but then we can see how the current stock price compares to that starting price.
Great. Now I need to copy this all the way down. So what I'm going to do is I'm going to go to column D. I'll then press control down Arrow to get me to the bottom.
Now go, I'll select E and F1,250, and I'm going to press control shift up arrow and then shift up. So now I've got all of my numbers selected and the columns where I want to copy this down to. I'm going to press control D to copy this down and my numbers fill in. Great. Now we need to create the graph, and this bit is relatively easy, there's not too many clicks needed. Again, I'll go down to the bottom of my data by pressing control down arrow. Arrow. I'll press shift left, left, left, left arrow, and then control shift up arrow.
I then just pressed shift down, so I didn't have this rebase stock price line included as well. So I've now selected my data. I want to go to the insert ribbon, then choose the insert line, and it's just the top left hand one there, the line chart, and there are four lines on here. Now remember, I don't actually want the original Ford share price and the original General Electric share price, but the two that I do want both start at 100. So it's really easy to identify the ones. I don't want the one starting at 200 up here. I can just click on it and then click delete and the Ford one in blue at the bottom here click on it and then delete.
Great. My chart's done and now I can do a bit of analysis. I can see that General Electric, relatively speaking, they started at 100. They've been bobbing along around the 50 mark since then. Whereas Ford relatively flat, but then short up fantastically high, up to a high of around 282.3.
So comparison between two companies, much easier when we rebase the stock price.