The actual definition is harder to understand than simply showing an example of how to calculate weighted average. Say you simultaneously invest different amounts of money in two companies ...

This can help investors make better and more informed decisions. While calculating TWR manually can be too much for individual investors, that doesn’t mean it isn’t a useful metric.

To calculate this weighted average, first input the two values for the number of shares outstanding into adjacent cells. In our example, during January, there were 150,000 shares, so this value is ...

In order to calculate your weighted average price per share, you can use the following formula: In words, this means that you multiply each price you paid by the number of shares you bought at ...

Now, let's say that Apple releases some incredibly positive news tomorrow, and its shares jump by 20%, or to $113.62. This would raise the price-weighted average to $64.53, a 10.8% jump.

With this weighted average, we can now calculate a different and more accurate EPS of $0.80 per share. Bear in mind that this is a simplified example, and a company's number of outstanding shares ...

To calculate a one-year dollar-weighted investment return, you need to know the change in the account balance over the year, the net total deposits and withdrawals in the account, ...

So to know if a company will meet or exceed your expectations, you can calculate the weighted average cost of capital based on your expected return on equity. Let's use ConocoPhillips as an example.