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.

What is Required Business Performance®?

Required Business Performance®, or RBP®, is the revenue growth necessary to support the current stock price. Guggenheim Investments uses its RBP® Methodology to determine each company's Required Business Performance® based on information disclosed in the company's publicly available financial reports.