About Us
Glossary
RBP®
The revenue growth necessary to support the current stock price. Required Business Performance® is used as a benchmark against which to measure management’s ability to perform in the future. It is calculated using a reverse discounted cash flow valuation model that uses the current stock price as the primary input.
RBP® Probability
The likelihood that management will deliver the Required Business Performance® to support the stock price. It is calculated by fitting the company’s historical revenue growth to a distribution, then finding the company’s Required Business Performance within this historical distribution.
In the hypothetical example below, the company’s RBP® Probability, represented by green, is 35% while its Behavioral Risk Indicator, represented by red, is 65%. RBP® Probability
Behavioral Risk Indicator
The likelihood that investors’ systematic behavioral biases have caused misalignment between the stock price and management’s ability to deliver. The Behavioral Risk Indicator is designed to capture the impact that human psychology has on the subjective valuation process used by investors. It is defined as one minus the RBP® Probability.
In the hypothetical example below, the company’s RBP® Probability, represented by green, is 35% while its Behavioral Risk Indicator, represented by red, is 65%. Behavioral Risk Indicator
RBP® Methodology
A system of fundamental stock analysis that uses a reverse discounted cash flow valuation model to determine what the stock’s current price implies in terms of future free cash flow and revenue (Required Business Performance® ) as well as the calculation of the likelihood that management can deliver the Required Business Performance®, known as RBP® Probability.
RBP® Platform
The Transparent Value decision support tool consisting of an interactive database containing the proprietary data produced by Transparent Value. Included are the Required Business Performance® (RBP® ) values, RBP® Probabilities and Behavioral Risk Indicators for more than 2,000 global stocks, the Transparent Value mutual fund rating system providing coverage of more than 3,000 funds, and also broad market indicators.
RBP® Snapshot
Provides updated company-specific RBP® information based on the company's most recent quarterly financial data. The RBP® Snapshot consists of the RBP® probability and RBP® values for a particular company.

About Us


Transparent Value LLC (“Transparent Value”) was established in 2003 as an asset management and financial services company seeking to enable investors to see the market clearly by introducing a transparent new way to invest. We have a highly differentiated and disciplined investment approach that seeks to combine the benefits of both active and passive investing. We have accomplished this by partnering with Dow Jones IndexesSM to create the Dow Jones RBP® IndexesSM, which rely on Transparent Value’s proprietary Required Business Performance® Methodology in their construction.

Our product, the Required Business Performance® (RBP®) Methodology, seeks to uncover the meaning behind stock prices. By using the current stock price as the primary input in its analysis, the RBP® Methodology works backwards to determine the likelihood management will deliver the Required Business Performance to support the stock price. We believe that knowing this also allows us to determine the likelihood that investors' systematic behavioral biases have caused misalignment between the stock price and management’s ability to deliver.

The RBP® Institute is the investment advisory division of Transparent Value. Its goal is to provide both investment professionals and individual independent investors with the tools to reveal the meaning of current stock prices. The RBP® Institute also serves a portal for access to RBP® Analysis Platform (RAP), an interactive database and decision support tool. The platform includes access to RBP® analysis of over 2000 global stocks and 1800 mutual funds, ETFs, UITs and closed-end funds. It also houses proprietary stock research, market analysis and information about Transparent Value investment products and indexes.