S&P 500/Citigroup Value Index


DEFINITION of 'S&P 500/Citigroup Value Index'

A market-capitalization-weighted index developed by Standard and Poor's consisting of those stocks within the S&P 500 Index that exhibit strong value characteristics. The S&P 500/Citigroup Value Index uses a numerical ranking system based on four value factors and three growth factors to determine the constituents and their weightings.

BREAKING DOWN 'S&P 500/Citigroup Value Index'

The value factors include:
1. Book value to price ratio
2. Cash flow to price ratio
3. Sales to price ratio
4. Dividend yield

The growth factors include:
1. Five-year earnings per share growth rate
2. Five-year sales per share growth rate
3. Five-year internal growth rate

Value and growth style scores are calculated based on the standardized factors.

  1. Undervalued

    A financial security or other type of investment that is selling ...
  2. Value Trap

    A stock that appears to be cheap because the stock has been trading ...
  3. Value Investing

    The strategy of selecting stocks that trade for less than their ...
  4. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  5. Value Stock

    A stock that tends to trade at a lower price relative to it's ...
  6. Weighted Average Market Capitalization

    A stock market index weighted by the market capitalization of ...
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