Analysis of the Average Company in the S&P 500

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zutalors212@yahoo.com - 20 Jan 2006 20:52 GMT

I analyzed 493 out of the 500 companies on the SP500. With the people
of microsoft.public.excel giving me guidance, I was able to take the
weighted averages of many key ratios for that index:

PE = 17.9079254407758
PB = 2.93147754323935
Debt/BookValue = 1.17693944444072
PS = 1.4996896887304
ROE = 0.163697216237257
Net Profit Margins = 0.0837444679837484

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Lawyerkill - 20 Jan 2006 22:09 GMT

zutalors
I analyzed 493 out of the 500 companies on the SP500. With the people
of microsoft.public.excel giving me guidance, I was able to take the
weighted averages of many key ratios for that index:

PE = 17.9079254407758
PB = 2.93147754323935
Debt/BookValue = 1.17693944444072
PS = 1.4996896887304
ROE = 0.163697216237257
Net Profit Margins = 0.0837444679837484

LK

And this means what?

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zutalors212@yahoo.com - 20 Jan 2006 22:39 GMT

P/E ratio (price/earnings) and so on...
P/S is price to sales
ROE is return on equity

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Lawyerkill - 20 Jan 2006 22:44 GMT

zutalors
P/E ratio (price/earnings) and so on...
P/S is price to sales
ROE is return on equity

LK

I know that, but what does it mean for investing?

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zutalors212@yahoo.com - 21 Jan 2006 14:22 GMT

To that, my friend Lawerkill, I invite you to www.morningstar.com's
online university (free and excellent).

http://www.morningstar.com/Cover/classroom.html

Also, you can ask some of my friends on misc.invest.stocks or
sci.economics.

Good luck.

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Fitzroy - 21 Jan 2006 07:40 GMT

> zutalors
> I analyzed 493 out of the 500 companies on the SP500. With the people
[quoted text clipped - 11 lines]
>
> And this means what?

I dont follow the US markets much, but on those numbers,
the obvious conclusions are :

1) On average, corporate profitability is sound
2) On averege, stock prices are fair.

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Bruno R - 20 Jan 2006 22:12 GMT

> I analyzed 493 out of the 500 companies on the SP500. With the people
> of microsoft.public.excel giving me guidance, I was able to take the
[quoted text clipped - 6 lines]
> ROE = 0.163697216237257
> Net Profit Margins = 0.0837444679837484

Excel has a feature for rounding to (at least!) 2 decimals <G>

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Lubow - 30 Jan 2006 06:07 GMT

Great job, zutalors! Greatly appreciated

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Lubow

>I analyzed 493 out of the 500 companies on the SP500. With the people
> of microsoft.public.excel giving me guidance, I was able to take the
[quoted text clipped - 6 lines]
> ROE = 0.163697216237257
> Net Profit Margins = 0.0837444679837484

Reply to this Message