Process & Philosophy
Glossary
RBP®
The revenue growth necessary to support the current stock price. Required Business Performance® is calculated using third-party valuation models including discounted cash flow that use 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 third-party valuation models including discounted cash flow 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 New Age Alpha, we reverse the traditional valuation method by starting with the value of a stock as determined by the market. Our methodology utilizes third-party valuation models including discounted free cash flow, 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 revenue growth and RBP®.This process is fact driven.

Transparent Value Approach