Value Line Composite Index

What Is Value Line Composite Index?

The Value Line Composite Index is a stock index containing roughly 1,700 companies from the NYSE, American Stock Exchange, Nasdaq, Toronto, and over-the-counter markets. The Value Line Composite Index has two forms: The Value Line Geometric Composite Index (the original similarly weighted index) and the Value Line Arithmetic Composite Index (an index which mirrors changes in the event that a portfolio held equivalent measures of stock.) These indexes are regularly distributed in the Value Line Investment Survey, made by Arnold Bernhard, the founder, and CEO of Value Line Inc.

Understanding Value Line Composite Index

The "Value Line" where the index accepts its namesake alludes to a various of cash flow that Bernhard would superimpose over a price chart to standardize the value of various companies. Value Line is one of the most regarded investment research firms. Its performance record has been very. As a matter of fact, the company's model portfolios have generally beat the market over the long run.

The Value Line Composite Index is made out of similar companies as The Value Line Investment Survey, excluding closed-end funds.

The number of companies in the Value Line Index vacillates in view of factors remembering the expansion or delisting of the companies for the exchanges themselves, mergers, acquisitions, liquidations, and the coverage choices made by Value Line for the Value Line Index. Value Line's choices concerning which companies to incorporate are embraced with the aim to make a broad representation of the North American equity market. Moreover, the number of companies listed on some random exchange might change, as a company might move starting with one exchange then onto the next or be added or delisted. Nonetheless, delisting or movement of companies on the exchanges are not factors in the Value Line Index methodology, in any case, whether the geometric or arithmetic estimations are utilized.

1961

The year that the original Value Line Geometric Composite Index was sent off.

The Value Line Geometric Composite Index

This is the original index, presented on June 30, 1961. It is a similarly weighted index utilizing a geometric average. The daily price change of the Value Line Geometric Composite Index is found by increasing the ratio of each stock's closing price to its previous closing price and raising that outcome to the corresponding of the total number of stocks.

The Value Line Arithmetic Composite Index

This index was laid out on February 1, 1988, utilizing the arithmetic mean to all the more closely impersonate the change in the index in the event that you held a portfolio of stocks in equivalent sums. The daily price change of the Value Line Arithmetic Composite Index is calculated by adding the daily percent change of the relative multitude of stocks and afterward partitioning by the total number of stocks.

Features

• There are two forms to the index — the Value Line Geometric Composite Index and the Value Line Arithmetic Composite Index.
• The Geometric Composite Index is equivalent weighted, utilizes a geometric average, and has a daily change nearest to the median stock price change.
• The Arithmetic Composite Index utilizes an arithmetic mean, with the daily change in the index mirroring a portfolio comprising of stocks in equivalent sums.
• The Value Line Composite index contains a mix of approximately 1,700 stocks from the major North American market indexes.