Indexed Performance Measurement

Indexed performance measurement uses comparable peer companies for relative performance evaluation. Relevant peer companies for indexing operating performance are called peer companies. A group of peer companies is called a peer universe.

Unlike benchmarking, the perspective of indexing is that of the investor, since the objective of indexing is to measure performance. This performance is determined by investor behavior: If an investor regards a company as a peer, then this company is part of the peer universe for indexing.

Indexing operating performance uses the following tools:

Commercial databases are used to perform the analyses. An overview can be found here.