Indexes
Glossary
RBP®
The revenue growth necessary to support the current stock price. Required Business Performance® 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.
RBP® Methodology
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.

Guggenheim IndexesSM   


The Guggenheim IndexesSM is the result of an exclusive partnership between S&P Dow Jones Indices and Guggenheim Indexes calculates the Required Business Performance® (RBP® ) Probabilities used in the indexes' construction and licenses them exclusively to S&P Dow Jones Indices for the construction of rules-based indexes.

Using the RBP® Methodology, we calculate the likelihood management can deliver the Required Business Performance, known as the RBP® Probability for every stock in our universe. Stocks are then selected for inclusion in the index based in part on their RBP® probabilities.

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