SP 500 Price to Sales vs. Price to Earning

XLU
 Etf
  

USD 70.53  0.41  0.58%   

For SP 500 profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SP 500 to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SP 500 Utilities utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SP 500's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SP 500 Utilities over time as well as its relative position and ranking within its peers. Check out Your Current Watchlist.
  
The market value of SP 500 Utilities is measured differently than its book value, which is the value of SP 500 that is recorded on the company's balance sheet. Investors also form their own opinion of SP 500's value that differs from its market value or its book value, called intrinsic value, which is SP 500's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SP 500's market value can be influenced by many factors that don't directly affect SP 500's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between SP 500's value and its price as these two are different measures arrived at by different means. Investors typically determine SP 500 value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SP 500's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

SP 500 Utilities Price to Earning vs. Price to Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining SP 500's current stock value. Our valuation model uses many indicators to compare SP 500 value to that of its competitors to determine the firm's financial worth.
SP 500 Utilities is rated first in price to sales as compared to similar ETFs. It is rated first in price to earning as compared to similar ETFs reporting about  3.89  of Price to Earning per Price to Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value SP 500 by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for SP 500's Etf . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the SP 500's earnings, one of the primary drivers of an investment's value.

SP 500 Price to Earning vs. Price to Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
SP 500 
P/S 
 = 
MV Per Share 
Revenue Per Share 
1.77 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
SP 500 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
6.88 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

SP 500 Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in SP 500, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SP 500 will eventually generate negative long term returns. The profitability progress is the general direction of SP 500's change in net profit over the period of time. It can combine multiple indicators of SP 500, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
In seeking to track the performance of the index, the fund employs a replication strategy. SP 500 is traded on NYSEARCA Exchange in the United States.

SP 500 Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on SP 500. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of SP 500 position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the SP 500's important profitability drivers and their relationship over time.

Use SP 500 in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if SP 500 position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SP 500 will appreciate offsetting losses from the drop in the long position's value.

SP 500 Pair Trading

SP 500 Utilities Pair Trading Analysis

The ability to find closely correlated positions to SP 500 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SP 500 when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back SP 500 - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SP 500 Utilities to buy it.
The correlation of SP 500 is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as SP 500 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SP 500 Utilities moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for SP 500 can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your SP 500 position

In addition to having SP 500 in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Cleaning Thematic Idea Now

Cleaning
Cleaning Theme
Compnanies producing and distributing cleaning products, supplies, and accessories. The Cleaning theme has 0 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cleaning Theme or any other thematic opportunities.
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Check out Your Current Watchlist. You can also try Bond Directory module to find actively traded corporate debentures issued by US companies.

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When running SP 500 Utilities price analysis, check to measure SP 500's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SP 500 is operating at the current time. Most of SP 500's value examination focuses on studying past and present price action to predict the probability of SP 500's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move SP 500's price. Additionally, you may evaluate how the addition of SP 500 to your portfolios can decrease your overall portfolio volatility.
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To fully project SP 500's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SP 500 Utilities at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include SP 500's income statement, its balance sheet, and the statement of cash flows.
Potential SP 500 investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although SP 500 investors may work on each financial statement separately, they are all related. The changes in SP 500's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on SP 500's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.