Use the GEOMEAN Function

This video covers how and when to use the GEOMEAN function. This functions determines a more accurate "average" of the growth rate for stocks, bonds or items where you are tracking percentage growth and need to take compound growth into consideration.
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[@zamundalion]

Awesome. Thank you Doug.

[@DougHExcel]

Hi JK Benjamin, thanks for the comment!

[@wm5171]

Thank you!

[@DougHExcel]

You’re welcome!

[@Salmon_tech]

I was getting NUM error all the time, and it turns out I just had to add 1 and then subtract it. thank you

[@DougHExcel]

Hi Kaizerr_88, you're welcome!

[@dalid.1112]

what negative growth? do that mess up anything?

[@CostcoBulkBuyer]

=sumproduct(geomean(row# : row#)+1))-1

[@ennykraft]

Strictly speaking, you're not supposed to use GEOMEAN with growth rates. Use growth factors instead. In this video those factors would be 1.8, 1.67 and 1.429. Then you don't have negative numbers which GEOMEAN can't handle. For example a 30% decrease would give you 0.7 instead of -30%. Unfortunately lots of people would have trouble understanding what a groth factor of 0.7 means. -30% is easier to understand. Doug solved the problem with his formula =GEOMEAN(C3:C5+1)-1 which basically converts the rates to factors. If you just entered =GEOMEAN(C3:C5), you'd get an incorrect result.His fomula can also handle negative numbers.

[@DougHExcel]

Hi Dali D., thanks for the comment

[@francishess9303]

@@DougHExcel Answer the question