Future Value Projection

30 Ağu

Future Value Projection with Actual CAGR

This indicator calculates the future value (FV) of the current ticker’s price using its historical Compound Annual Growth Rate (CAGR). It measures how much the price has grown over a chosen lookback period, derives the average annual growth rate, and then projects the current price forward into the future.

Formulae:

CAGR:

CAGR = ( PV_now / PV_past )^(1 / t) - 1

Future Value:

FV = PV_now × ( 1 + CAGR / n )^( n × T )

Where:

PV_now = Current price

PV_past = Price t years ago

t = Lookback period (years)

CAGR = Compound Annual Growth Rate

n = Compounding periods per year (1=annual, 12=monthly, 252=daily, etc.)

T = Projection horizon (years forward)

How it works:

Select a lookback period (e.g., 3 years).

The script finds the price from that time and computes the CAGR.

It then projects the current price forward by T years using the CAGR.

The chart shows:

Current price (blue)

Projected FV target (green)

A table with CAGR and projection details

Use case:
Helps investors and traders visualize long-term growth projections if the ticker continues growing at its historical pace.

30 Ağu

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