A proprietary process based on the Fisher Effect, where Fed Funds ~ Real GDP + Inflation, all instantaneous, is brought forward for 7 years. The Atlanta Fed “GDPNow” is used to have best efforts of current GDP annual change of current dollars, which is NGDP .

This in turn is applied to the last GDP current dollars level and then this is disaggregated to a daily GDP current dollars level. Using the Fisher Effect a forward annual change in GDP current dollars, NGDP, is derived and this then is applied to the last GDP current dollars levels to derive a 7 year forward GDP current dollars level, or NGDP level.

Equity price is then compared or charted against this value to determine both relative rich/cheap and outright rich/cheap.