FTB-C000101 / Formula component

Price Return

Price return measures the change in an asset's price while excluding cash distributions such as dividends.

Also known ascapital return

Foundation Formula defined 5 linked topicsPublished

Definitions

In plain terms

If a share rises from 100 to 105, its price return is 5%, regardless of any dividend paid during the period.

Technical

For comparable start and end price bases, price return is the ending price minus starting price divided by starting price; corporate actions and currency basis must be controlled.

Scope

It excludes distributions and is not the same as an investor's total economic return.

Formula

R_price = (P1 - P0) / P0
LaTeX: R_{price}=(P_1-P_0)/P_0
SymbolMeaningUnit
P0starting comparable pricecurrency
P1ending comparable pricecurrency

Output unit: decimal return

Examples

  • A governed calculation records price return with its exact basis, effective time, source, and units.

Common misconceptions

  • Price Return does not have one universal treatment without the applicable methodology, event terms, and data context.

Concept relationships

Related

Contrasts with

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D02-F01-A01 Important
  • D02-F01-A02 Important
  • D02-F01-A04 Important
  • D02-F02-A01 Important
  • D03-F04-A01 Primary

Evidence and governance

  1. S&P Dow Jones Indices Index Mathematics Methodology S&P Dow Jones Indices · first party methodology

    Supports: preferred label, short definition, technical definition, formula

    Limits: Authoritative for the provider's indices; conventions are not universal defaults for every index or security-level return series.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.