How to Calculate Average Share Price in Excel (2 Easy Ways)

What Is the Weighted Average?

The weighted average is a neat way to calculate the average of the items that have different quantities as well as prices. For example, you bought 4 apples at a unit price of $1.5 and 6 oranges at a unit price of $2. Your average cost will be the weighted average of these two costs.

Weighted Average =∑(Number of units* Unit Price)/Number of Total Units

In this case the average cost is = (1.5*4 + 2*6) / 10 = 1.8

The term “weighted average” refers to an average in which each of the quantities to be averaged is given a weight. We can determine the relative relevance of each quantity using this weighting. In this case, the weight was the number of units bought for each fruit.

How to Calculate the Average Share Price in Excel: 2 Easy Ways

Method 1 – Using the SUMPRODUCT Function

Steps:

Select the F5 cell and use the following formula:

=SUMPRODUCT(C5:C10,D5:D10)/C11

Hit Enter.

We will have the average share price of all the shares.

Method 2 – Applying the Formula Manually

Steps:

Select the F5 cell and use the following formula:

=SUMPRODUCT(C5:C10,D5:D10)/C11

Hit the Enter button.

We will have the average share price of the shares.

How to Calculate the Average Trading Price

The average trade price is determined by adding up the prices of the transactions done over a specified time period and then dividing that total by the total number of trades.

The formula of the Average Trade Price is:

Average Trade Price, = ∑(Prices)/ Number of Trades

Steps: