Saturday, February 7, 2015

Russell 2000 Facts And Figures

A recent article about the Russell 2000 has some interesting facts and figures about the index. In case you don't know, the Russell 3000 index consists of the largest 3,000 stocks by market capitalization in the U.S. The Russell 2000 consists of the smallest 2,000 stocks in the Russell 3000 index. So, the Russell 2000 is a small cap index. The largest company in the index has a market cap of $5 billion and the median market cap is about $528 million. What we found interesting in the article was several ratios. For example, the current PE ratio for the Russell 2000 index is 22.7, higher than the historical average of 16.2. And, the current price-sales ratio is 1.6, 67 percent higher than its historical average. As for sales, while only 64.3 percent of the sales for all S&P 500 companies comes from within the U.S., 81.3 percent of the total sales for Russell 2000 companies come from within the U.S.