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Inspiring ally works fine, got it on mount and it works as it should.
your companion has + 100% increased damage
then your total increased damage is 300%
That would mean going from x3 to x4, or 33% relative increase.
tl:dr,
"increase" and "decrease" are additive
"more" and "less" are separate multipliers
All "increased damage" bonuses are within one bucket. So its bonus is additive.
Lets say you attack with 100 melee damage. If you get +100% increased attack damage and then +50% increased melee attack damage from other source, you deal 250 damage. 100% and 50% increases are in same bucket and thus additive, so damage is 100+(100%+50%), not (100+100%)+50% (which would be 300).
2681 / 652 = 4.11 (+311%) so if you have 72% without it, then the bonus you think it gives is 239%? The 4 nodes leading up to Inspiring Ally is 80%, assuming companion is within your presence range. Where is the other +159% you're expecting to have?
If you really want to have it laid out out for you exactly, post a link to your character so we can look at your gear/passive tree and point out exactly what your personal total increase is and what your combined total is.
How do you know your base damage?