A different perspective
Transparent Value believes the key to successful investing is to measure the performance
implied (Required Business Performance) in the price of a stock and benchmark that
implied performance against management’s ability to perform in the past (RBP probability). The success of Transparent Value’s investment strategy depends on the effectiveness of the RBP® methodology in screening securities, and there is no assurance the RBP® methodology will identify companies that will either achieve its RBP® or outperform the performance other indices.
Is it worth it?
Traditionally, investors approach an investment decision from an "is it worth it"
perspective.
What does a stock price imply?
We first ask: "What is the business performance required to support the current
price of its stock?"
What is the likelihood?
We then ask: "What is the likelihood that management can deliver the performance
necessary to support the price of its stock?”
Our mission aims to deliver sustainable returns by reducing the investment decision to a single question:
"Can management deliver the required business
performance to support the price of
its stock?"
We believe, based on our analysis, if management is likely to deliver, the company is worth the investment.