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.
Taobiz explains 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.
