GEOMEAN multiplies values and takes the n-th root. For growth rates it gives the honest average: +50% followed by −50% is not an average of 0%, you lost a quarter.
Syntax
=GEOMEAN(number1, [number2], ...)
Argument
What it means
number1…
Positive numbers only.
Examples
Example 1
=GEOMEAN(1+B2:B6)-1
Average annual return from five yearly returns in B2:B6.
Common errors and fixes
You see
Why, and the fix
#NUM!
A zero or negative value — add 1 to percentage returns first.
