Equity Portfolio AnalysisFree Financial Model Download

An equity portfolio analysis model tracks a 10-stock portfolio over a five-year period, computing total return accounting for dividends, rebalancing, and capital gains tax on realized trading events. The model begins with each position's entry price, dividend yield, expected annual return, and allocation percentage. Each year, the portfolio is rebalanced back to target allocations by selling positions that have outperformed (and realizing gains) and buying positions that have underperformed. Capital gains tax is applied only on the realized gain from the shares sold—not on paper gains that remain unrealized—capturing the tax efficiency of buy-and-hold versus active rebalancing.

The workbook computes both the internal rate of return (IRR), which accounts for the timing of dividend inflows and outflows, and the annualized return (CAGR), which is simpler but ignores timing. Management fees (typically 0.5% annually) and transaction costs (10 basis points per dollar of shares traded) are deducted from returns. The Sharpe ratio (excess return per unit of volatility) allows comparison to the S&P 500 benchmark, showing whether the portfolio's active returns justify its risk and costs.

This model is suitable for individual investors, wealth advisors, and asset owners evaluating active versus passive management, or assessing the tax efficiency of concentrated portfolios.