How are comps index values calculated?

Comps index values are calculated as aggregates. The comps set is treated as a single entity where the sum of all the comps comprises the financials. The metric for the index is then calculated as a whole.

Using an aggregate calculation is equivalent to using a weighted mean of the individual company metrics, weighted by the ratio denominator. For more on this approach, read this post about weighted averages on Fix The Pitch

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