Historical S&P 500 Industry Weights – [20 Year History]
If you’re benchmarking to the S&P 500, then it helps to know the context of your industry weighting compared to the index. It can help to explain your portfolio’s relative performance. It can also create a “heat check” to how your portfolio is balanced, and how it might react to an upcoming economic cycle. Before […]
Historical EPS Data for the S&P 500 – 20 Years of Average YOY Growth
Comparing a company’s historical EPS (earnings per share) data with the S&P 500 helps give insight on a company’s growth. It can tell investors whether that company is keeping up with the market or economy. It can also tell investors if that company deserves its valuation. The reason to look at historical EPS growth to […]
[S&P 500] Average Valuation Multiples by Industry: P/E, P/FCF, P/S, P/B, PEG
There are many valuation multiples which investors use to compare stocks with their peers in an industry. This post displays the mostly commonly used valuation multiples, showing average multiples of the S&P 500 by both sector and industry for Fiscal Year 2021 and 2020, as well as the 19 or 20-year historical averages (2002 – […]
Stock Market Days Up vs. Down Percentage [Updated]
So I was doing some research on the S&P 500 and came across some interesting data. Basically, I wanted to know what the stock market does on average. I particularly wanted to know the percentage of how many days the stock market is up vs. down. Getting my data was actually simpler than you might […]
Comparing the P/E Ratio of Nifty 50 Companies with Today (7 Examples)
The nifty 50 companies were the most popular stocks of their time in the 1960’s and 1970’s. These 50 companies were growing so fast that investors bought them at any price, even at high P/E ratios. There were valid reasons behind these high P/E (Price to Earnings) ratios. But, as we’ll uncover today, the results […]
FAANG Companies: Is Their High Growth Sustainable?
The FAANG companies—aka Facebook, Apple, Amazon, Netflix, Google—are technology leaders of the stock market known for their high rates of growth. They are sometimes referred to as “Big Tech”. There is no special qualification to be a FAANG stock; it’s simply a catchy acronym to represent some companies which have done really, really well in […]
What Negative Net Income Means for a Company; Number of Years [S&P 500]
The facts behind negative net income are clear. Negative net income is when a company’s expenses are larger than their revenues. Simple as that. What’s maybe less clear are the implications to a company with negative net income. Is negative net income something to be ignored? Sometimes. Is negative net income a bad development for […]
Average Gross Profit Margin by Industry – 20 Years of Data [S&P 500]
Gross profit margin is one of the three main margins formulas in a company’s income statement which measures a company’s efficiency in creating profitability. Gross profit margin, or “Gross Margin”, is basically how profitable a product or service is, before you account for the operating costs, taxes and interest payments to run the business. This […]
Average Operating (EBIT) Margin by Industry – 20 Years of Data [S&P 500]
Operating margin is probably the most useful profitability ratio because it’s much less volatile than net margin, but includes all operating expenses to run a business (which gross margin doesn’t). Obviously we want to see increasing operating margins over time. But how’s an investor to know if a company’s general levels of operating margin are […]
R&D Spending as a Percentage of Revenue By Industry [S&P500]
Research and Development, or R&D, spending is a critical expense for companies looking succeed in the future—depending on which industry that company is in. Watching trends in R&D spending, particularly as a percentage of revenue, can help investors get an idea of how forward thinking a company is being. R&D spending is a main operating […]
