How to calculate historical return on investment in a share

#1

I was having a discussion with my father, regarding the life insurance policy he had bought for Rs 19470 on 12/3/2004 which has a cover of mere Rs 50,000.

I want to know instead if he had bought shares of SBI worth Rs 19470 on 12/3/2004, how much its worth would have been today. Including dividend paid since then.

Can anyone help me with this calculation. Is there any online tool for this?

#2

@rupeshmandal

Price of sbi share around Apr 2004 = 60 Rs/Share.

No of shares worth 19470 Rs in Apr 2004 = 324.

Price of sbi Today = 309 Rs/Share.

Value of your investment today = 1,00,116 Rs.

I could not get the dividend history . I guess you need to check with sbi for dividend history.

But approx 400% ROI from 2004 till 2019.

#3

Thanks, but this is a very straight forward calculation. Have you considered corporate actions like split and bonus?

#4

No, again you will have to pull the data from SBI by emailing them.

Tell them you are a investor.

This is simple and rough calculation, but what exactly are you trying to get out of it.

Are you comparing insurance vs investing, since you mentioned life insurance policy?

#5

These days almost all charts already account all corporate actions, else there will be option to adjust for corporate actions.

Considering the above fact, yes the share price was around 60 at that time.

#6

This calculation is just for discussion sake. But it would be an useful tool to calculate historical returns on your investments.

1 Like
#7

go to valueresearchonline and create dummy portfolio. as soon as you add sbin share with 15-20 years old date, it will show option to adjust bonus split dividend etc.

#8

you didn’t answer the question.

Also, why would it be useful to calculate historical returns?.

Historical returns dont have anything to do with future. so why keep analyzing historical returns to death?

What you should really be looking for is historical risk and then compare with other investments.