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Value Line Composite Index

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The Value Line Composite Index is comprised of all of the companies that are included in the Value Line Investment Survey.

There are currently 1,626 companies included in the index that are publicly listed on the following exchanges[1]:

  • American Stock Exchange - 8 companies
  • NASDAQ - 511 companies
  • New York Stock Exchange - 1,087 companies
  • Toronto Stock Exchange - 20 companies

The Value Line Composite Index has been traded on the futures market at the Kansas City Board of Trade since 1982.

Value Line (Geometric) Average

The original index was released on June 30, 1961 and was an equally weighted index using a geometric average[2]. Because it is based on a geometric average the daily change is closest to the median stock price change. The daily change of the geometric index is found by multiplying the ratio of each stock's closing price to its previous close and raising that result to the reciprocal of the number of stocks tracked.

Value Line (Arithmetic) Average

Starting on February 1, 1988 Value Line began calculating the composite index using the arithmetic mean to more closely mimic the change in the index if you held a basket of stocks in equal amounts. This version of the index is calculated by adding the percent change of all of the stocks and then dividing by the total number of stocks.

References

  1. ^ Kansas City Board of Trade's list of companies covered by the Index
  2. ^ Article by Value Line comparing the two index methods
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