Analysis of the Average Company in the S&P 500

[zutalors212]

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

 

[Lawyerkill]

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?

 

[Bruno R]

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

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

 

[zutalors212]

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

 

[Lawyerkill]

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?

 

[Fitzroy]

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?

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.

 

[zutalors212]

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.

 

[Lubow]

Great job, zutalors! Greatly appreciated