About Us

Transparent Value LLC (“Transparent Value”) was established in 2003 with a dedicated vision: the pursuit of delivering sustainable investment returns across global equity markets by introducing a new way to measure the equity value of publicly traded companies.

Utilizing patent-pending processes and innovative technology, the Transparent Value investment methodology aims to provide investors with risk-adjusted returns by fusing the insights of fundamental analysis with the transparency of a disciplined, rules-based stock selection and portfolio construction process.

Transparent Value calculates the Required Business Performance^® probabilities used in the Dow Jones RBP Indexes^SM and licenses the RBP^® probabilities exclusively to Dow Jones Indexes^SM for the construction of domestic and global indexes.

Since 2003, Transparent Value has grown into a financial services firm with subsidiaries, including Transparent Value Advisors LLC (“TVA”), a U.S. registered adviser and Transparent Value Pvt., Ltd., its Indian knowledge center.

In May 2009, Guggenheim Partners LLC (“Guggenheim Partners”) acquired a controlling interest in Transparent Value and its subsidiaries. Guggenheim Partners is a globally diversified financial services firm with wealth management, capital markets, investment management, and proprietary investing businesses. Their client base includes an elite mix of individuals, family offices, endowments, foundations, insurance companies, pension plans, and other institutions that together have entrusted the firm with supervision of more than $100 billion in assets.

At the core of our tools and services is the RBP^® methodology, as shown below:

Dow Jones Indexes and Required Business Performance

The Transparent Value decision support tool is an interactive database which consists of RBP values and RBP probabilities for thousands of global stocks. This toolset is known as the RBP Analysis Platform (“RAP”), which is managed by a team of MBA accredited analysts. The RAP system is accessible 24 hours a day, seven days a week through the Transparent Value RBP Analysis Platform website.

The RBP^® values and RBP^® probabilities featured in the RAP system are updated daily to reflect changes in a company’s stock price and quarterly to reflect changes in their published financial statements.

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%.

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.