Process & Philosophy
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.

Fact-Driven, Forecast-Free


How We Calculate RBP®

At Guggenheim Investments, we reverse the traditional discounted free cash flow method by starting with the value of a stock as determined by the market. Our methodology is a reverse discounted free cash flow analysis utilizing a company's current stock price, its income statement, balance sheet and cash flow statements to determine what the current price of its stock implies about future free cash flow (FCF), revenue growth and RBP®.This process is fact driven.

Transparent Value Approach