Patent ID: 7685069

Claim:
A method of generating a financial market index, the method comprising: determining, using a computer system, a weight for each of a plurality of constituent securities that comprises the index by: deriving residual earnings for each of the constituent securities; calculating a forecasted book value for each of the constituent securities based on metrics that comprise (i) the residual earnings, (ii) a historical book value, and (iii) a historical earning per share growth value for each of the constituent securities, wherein the forecasted book value for each of the constituent securities for time period n, calculated at time period 0, is calculated based on the equation: Forecasted ⁢ ⁢ Book ⁢ ⁢ Value n = Book ⁢ ⁢ ⁢ Value 0 + ∑ i = 1 n ⁢ Residual ⁢ ⁢ Earnings 0 ⁢ x ⁡ ( 1 + ⁢ Historical ⁢ ⁢ EPS ⁢ ⁢ Growth ) n ; ⁢ and deriving the weight for each of the constituent securities based on the forecasted book value; and generating, with the computer system, a value for the financial market index based on the weights.