Question from a user about definitions (Time-Weighted vs XIRR)

Q&A
1

I would like to understand the various functions/calculations used in stockscafe.

E.g. metrics like P&L + Dividends, Dividends, etc… for example, for Valuetronics the Div % under Porfolio says ‘12.98%’ --> What does this mean?

Under Overview, when we say that P&L + Dividends is +57%, what does that mean? How is that calculated?

3

Div % Under Portfolio is the Total Dividend Received since you bought it as a percentage of your Buy-in value.

Say Total Dividends Received is 25 + 25 = 50 You bought it for 1000. Div % will reflect 5.0%.

P&L + Dividends means you add your Div % with your P&L gain in %.

For example, in addition to your dividends, your stock is worth 1100 now, which is a P&L again of 10%.

P&L + Dividends will equal to 15%, also known as Total Return.

4

Hi,

May I also clarify how is “P&L + Dividends + Closed”, “Time-weighted” and “XIRR” calculated? These are not found in the definitions page (https://stocks.cafe/definitions/technicals). Perhaps we could include these terms?

Thank you! :slight_smile:

5

Time-weighted -> https://www.investopedia.com/terms/t/time-weightedror.asp

XIRR -> https://www.slideshare.net/imoneyplant/xirr

P&L + Dividends + Closed -> This will be “P&L + Dividends” + the P&L of closed positions. Hope it is clear :slight_smile:

6

Hi Evan,

Thank you… Don’t mind me asking more questions:

  1. How is “closed” calculated in the portfolio? I noticed that the figures are the same everyday.
  2. Why is the “current cost” showing a different value every day? Isn’t this the cost of my stock purchases?
7

How is “closed” calculated in the portfolio?

It is all your closed positions P&L and the dividends that were collected by positions that were already closed. I assume when you say figures, you mean Total in your base currency. It is the same because I peg the exchange rates to the particular date. That is either the day you close the position for P&L or the Ex-Date for dividends.

Why is the “current cost” showing a different value every day?

I assume you are talking about the Total in base currency. It is because since the positions are still open, I am always using the latest exchange rates. Although I guess you could argue that for cost in particular should be the day it is bought.

8

Hi,

Can I clarify how is “Annual P&L” computed under the report section of the portfolio please?

This was the definition give - Annual P&L = P&L + Dividends + Closed

Can I clarify the following please,

P&L = P&L of open positions for that year

Dividends = Dividends for that year

Closed = P&L of closed positions for that year

9

@speedy99 Yes, your assumptions are correct!