Okay great we now know why we need to include a share price slide and what content should go into it.
And in this lesson we will talk about what the share price slide design and structure should be.
Let's get straight to it.
Companies share price evolution slides are often structured as one big share price chart on a full page.
If one or more indexes or other benchmark stocks are included for comparison they should be rebase to
start from the common initial number.
Ideally this would be our company of focus share price on Day 1 of the period for later dates benchmark
indexes and stocks would be shown on the graph in their relative performance to day 1.
Let me show you how that works.
So you have your company's share price your benchmark price and your read based benchmark price.
On day one for the company and the benchmark we have respectively C1 and BE1 as actual prices to rebase
D-1 to see one on day one.
We use the following calculation.
Our one equals BE1 divided by B one times C-One.
On day two to obtain are two we use our two equals BE2 divided by B one time C-One on day three to obtain
are three.
We use our three equals B three divided by B one time C-1 And so and so forth for the other days.
We can define this formula for any day n as r n equals be N divided by be 1 times C-One.
Another good practice is to indicate the performance of all the stocks and indexes on the graph for
the entire period in text boxes or a table.
That way the audience can clearly see their relative performance for the period typical time periods
to use or the last 12 months LTM last two to three or more years.
Year to date YTD or since IPO if trading volumes are included on the chart they should be on a secondary
y axis as share prices are the primary X-axis.
When news and corporate events are added to the chart and text boxes they should be linked with connectors
or guiding lines to the relevant closing price on the relevant date.
And this is how we create a company share price slide in our next lesson will continue with a company
timeline page.
Keep up the good work and thanks for watching.