DOW JONES INDUSTRIAL AVERAGE
Intrinsic Value of Stocks
|
|
Intrsc value - Intrinsic value, $
Up or dwn - Upside or downside price movement potential (based on raw results of the model calculation), %
The Dow Jones Industrial Average (DJIA) is the best-known stock market index. It is also referred to as the Dow Jones, the Industrial Average, the Dow 30, or simply the Dow. Created in 1896 by Wall Street Journal editor Charles Dow, the index originally represented the dollar average of twelve stocks of leading American industrial companies. The average is named after Dow and one of his business associates, statistician Edward Jones.
In 1928 the number of stocks in the Dow Jones Industrial Average was increased to thirty. Now the average comprises the largest publicly owned companies based in the United States and not necessarily related to heavy industry.
The DJIA a price-weighted average and is calculated as the sum of the prices of all thirty stocks divided by a divisor (the Dow Divisor). This gives higher-priced stocks more weight in the average than their lower-priced counterparts and does not take into account market capitalization of the components, which distorts the picture of overall market performance.