Can anyone explain what the figures mean exactly??
dannypea last edited by
in a word.....
Mintyfresh last edited by
@GregT14 I am far from an expert but it apparently represents the 'market cap' of the 200 top players. I thought it was calculated by taking the sum of the current price of each player but post the previous share splits, it might then be a multiple of this total. The theory should therefore be that a rising Footie means prices on the whole are on the up and vice versa when it's going down. Hope this helps a bit.
Makes a little bit more sense now. Cheers
Misto last edited by
"Footie" Index is the index number that represents the 'market cap' of all 200 footballers in 1st Team List at a point of time - being the sum of the current price of each footballer. Much like the FTSE 100 which was launched on 3 January 1984 and had a start value of 1,000.0, the "Footie" Index launched in October 2015 with a base value of 1,000 points."
The footie works like any market indices does.
To calculate the value of a value-weighted index, sum the market capitalization for each company (player) and divide it by a divisor which is set initially to make the index a round number.
To work it out yourself, you would need to know the total number of shares for each player in issue to work out the market caps and the index divisor, which isn't public.
To work it out yourself you would do the following calculation:
Index value = Σ(market cap of Top 200)/index divisor
Index divisor. This arbitrary number, defined when an index is first established, allows us to divide the index to produce an initial value that’s easier to wrap your head around, such as 100.0.
In short we can never really work it out ourselves because we don't have all the information we need.
We are suppose to use the "Footie" just like we would any other indices and view is as a representative of the current value of the market to help investors track changes in market values over long periods of time. Just like with the FTSE 100, Dow Jones, S&P, Nikkei ect.
It could be the FOOTIE is now using all players, not just the top 200 and zendesk needs a update. Either way the above still stands.
Misto last edited by Misto
@Mintyfresh A indices uses a index divisor to keep the number sensible. The FSTE would be 2,054,230,146,669 without a divisor insted of 7,353.78 which is easier to track. The NASDAQ has a market cap of 10 trillion, try wrapping your head round that number.