# Percentage Upside

This data item is calculated as percentage difference between target price of the stock and the close price. Stock brokers project the expected price level of the stock over the near term. Average of all these projections for a particular stock is called target price of the stock. Suppose 3 brokers are covering stock XYZ and have projected the stock price to be Rs.112, Rs.128 and Rs.97 over the near term. Target price is calculated as (112+128+97) / 3 = Rs.112.33

Percentage difference between the target price and the current stock price shows the potential upside/downside in the stock. Suppose current market price of stock XYZ is Rs.88, we have calculated target price as Rs.112.33. Percentage upside is calculated as (112.33 / 88) – 1 = 27.65%. A positive number indicates potential upside whereas negative number indicates downside