1. FAQs
  2. Performance

How do you calculate Growth, Valuation, and Risk measures?

The aggregate measure of Growth for a Vue is calculated using reported past and future earnings growth estimates. One notch signifies lower growth while five notches reflects higher growth potential.

The aggregate measure of Valuation for the Vue is calculated using relative values measures such as free cash flow yield, earnings yield, and other empirically tested metrics. One notch signifies relative expensiveness while five notches signifies relative cheapness.

The aggregate measure of Risk for the Vue is calculated using the standard deviation of the share prices of the underlying shares in the Vue over the past 12 months. One notch signifies a narrower share price trading band of the constituent stocks in the Vue, and consequently lower risk, while five notches signifies higher risk (and wider share price trading band).