Transparent Value
Encyclopedia
Transparent Value
LLC is a division of Guggenheim Partners LLC
specializing in the management of equity mutual funds and separately managed accounts. The firm is headquartered in New York City.
and elements of quantitative finance to select stocks. Analysts use a reverse discounted cash flow
analysis to determine the performance implied by the stock price. This performance is called the Required Business Performance. Using historical performance, analysts then calculate the probability the company will deliver this performance. This probability is called Required Business Performance Probability.
The methodology was licensed to Dow Jones Indexes
and serves as the basis for the Dow Jones RBP Indexes.
LLC is a division of Guggenheim Partners LLC
Guggenheim Partners
Guggenheim Partners, LLC is a privately held, diversified financial services firm that engages in investment banking, capital markets services, investment management, and investment advisory. The firm is headquartered in Chicago and New York with over 1,400 professionals located in 20 cities...
specializing in the management of equity mutual funds and separately managed accounts. The firm is headquartered in New York City.
Investment Methodology
Transparent Value developed the Required Business Performance (RBP) Methodology. The methodology uses fundamental analysisFundamental analysis
Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets. When applied to futures and forex, it focuses on the overall state of the economy, interest rates, production, earnings, and...
and elements of quantitative finance to select stocks. Analysts use a reverse discounted cash flow
Discounted cash flow
In finance, discounted cash flow analysis is a method of valuing a project, company, or asset using the concepts of the time value of money...
analysis to determine the performance implied by the stock price. This performance is called the Required Business Performance. Using historical performance, analysts then calculate the probability the company will deliver this performance. This probability is called Required Business Performance Probability.
The methodology was licensed to Dow Jones Indexes
Dow Jones Indexes
Dow Jones Indexes was formed in 1997 as an entity within Dow Jones & Co. It is now owned by the CME Group. It serves as the marketing name of CME Group Indexes, LLC. It produces, maintains, licenses and markets indexes as benchmarks and as the basis of investible products such as exchange traded...
and serves as the basis for the Dow Jones RBP Indexes.