The Unique Metric Behind Groundbreaking Indexes

Have you ever been skeptical of a company’s stock price? Based on current market conditions, is it trading at an artificially high price? Or maybe your instinct tells you it is too low considering the present environment. In the end, how do you know the stock price for a company is justified?

Dow Jones Indexes, in conjunction with Transparent Value LLC, offers indexes with the goal of addressing these important questions. The indexes are based on a metric that seeks to measure the probability that companies will deliver the business performance necessary to support their current stock price. In short, the metric is intended to help investors understand:

	What is the required business performance (RBP) to support a company’s stock price?
	What is the probability that the company’s management can deliver this business performance?