DEFINITION of 'Value Line Index'

A stock index containing approximately 1,675 companies from the NYSE, American Stock Exchange, Nasdaq and over-the-counter market. The Value Line Index has two forms: The Value Line Geometric Composite Index (the original equally-weighted index) and the Value Line Arithmetic Composite Index (an index which mirrors changes if a portfolio held equal amounts of stock.) These indexes are typically published in the Value Line Investment Survey, created by Arnold Bernhard, the founder and CEO of Value Line Inc.

BREAKING DOWN 'Value Line Index'

The "Value Line" where the index receives its namesake refers to a multiple of cashflow that Bernhard would superimpose over a price chart to normalize the value of different companies.

Value Line is one of the most respected investment research firms. Its performance record has been extremely strong. In fact, the firm's model portfolios have generally beat the market over the long run.

  1. Unweighted Index

    A simple arithmetic or geometric average used to calculate stock ...
  2. Arithmetic Index

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  3. Indexing

    In the financial markets, indexing can be used as a statistical ...
  4. Broad-Based Index

    An index designed to reflect the movement of the entire market. ...
  5. Price-Weighted Index

    A stock index in which each stock influences the index in proportion ...
  6. Total Return Index

    A type of equity index that tracks both the capital gains of ...
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