Valuation of stock indices
| Stock index | Current value | Intrinsic value | Up/down potential, % | Average historical excess return of individual stocks by rating (vs. S&P 500, %/yr) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Strong Sell (SS) | Sell | Hold | Buy | Strong Buy (SB) | SB minus SS | |||||||
 Nasdaq-100 | 22,763.313 | 13,628.81 | -40 | 0.1 | 5.3 | 2.4 | 6.6 | 17.5 | 17.4 | |||
| Dow Jones Industrials | 43,588.59 | 34,077.36 | -22 | -7.2 | 2.6 | 3.5 | -0.4 | 6.0 | 13.2 | |||
| Dow Jones Transportations | 15,104.25 | 12,708.5 | -16 | -1.3 | -3.3 | -4.4 | 7.3 | 25.5 | 26.8 | |||
| Dow Jones Utilities | 1,107.91 | 839.14 | -24 | -2.5 | -0.3 | 1.2 | 2.7 | 0.1 | 2.6 | |||
| S&P 500 Index | 6,238 | 4,298.13 | -31 | -1.2 | -0.5 | 0.9 | 1.6 | 10.0 | 11.2 | |||
| S&P 400 Index | 3,104.61 | 3,287.59 | 6 | -6.5 | -1.4 | -1.3 | -1.7 | 9.5 | 16.0 | |||
| S&P 600 Index | 1,323.05 | 2,926.25 | 121 | -6.4 | -5.0 | -5.7 | -5.7 | 6.4 | 12.7 | |||
| S&P 500 Financials | 855.29 | 679.62 | -21 | -1.0 | -1.2 | -0.1 | 2.3 | 7.5 | 8.5 | |||
| S&P 500 Health Care | 1,527.28 | 1,058.24 | -31 | -6.7 | -2.0 | 0.8 | 5.4 | 10.9 | 17.6 | |||
| S&P 500 Energy | 655.07 | 668.17 | 2 | 7.5 | -4.3 | -8.0 | -9.1 | 1.8 | -5.7 | |||
| S&P 500 Information Tech. | 5,112.53 | 2,964.68 | -42 | 0.5 | 5.7 | 6.9 | 4.1 | 11.9 | 11.4 | |||
| S&P 500 Communic. Services | 380.27 | 280.32 | -26 | -16.4 | -1.1 | 3.0 | 5.5 | 9.9 | 26.3 | |||
| S&P 500 Consumer Discret. | 1,735.17 | 1,238.04 | -29 | -4.8 | 1.4 | 1.5 | -5.2 | 13.1 | 17.9 | |||
| S&P 500 Consumer Staples | 879.18 | 653.02 | -26 | -5.7 | -4.1 | -3.9 | -0.9 | 7.2 | 12.9 | |||
| S&P 500 Industrials | 1,267.15 | 823.67 | -35 | 2.5 | 1.1 | 2.8 | 4.5 | 11.3 | 8.8 | |||
| S&P 500 Materials | 549.13 | 310.34 | -43 | -2.6 | -3.1 | 0.8 | -0.5 | 13.6 | 16.1 | |||
| S&P 500 Real Estate | 259.21 | 173.76 | -33 | -0.1 | -5.4 | -1.3 | 2.1 | 12.2 | 12.3 | |||
| S&P 500 Utilities | 435.59 | 305.65 | -30 | 0.3 | 0.2 | 1.1 | 3.0 | 2.0 | 1.8 | |||
 TSX Composite | 27,020.3 | 23,379.61 | -13 | 3.4 | 5.2 | 2.4 | 2.1 | 12.1 | 8.7 | |||
 Nikkei 225 | 40,799.6 | 43,648.24 | 7 | -2.0 | 6.4 | 2.4 | 1.1 | 3.1 | 5.1 | |||
 FTSE 100 | 9,068.58 | 1,917.12 | -79 | 5.0 | 49.2 | 49.4 | 13.6 | 45.8 | 40.7 | |||
 DAX | 23,425.97 | 16,798.87 | -28 | -5.7 | 8.9 | 2.8 | 0.2 | 7.0 | 12.8 | |||
 CAC 40 | 7,546.16 | 6,737.12 | -11 | 6.4 | 3.8 | 6.4 | 7.2 | 9.1 | 2.7 | |||
 SMI | 11,836 | 9,405 | -21 | 4.7 | 1.4 | 8.3 | 8.2 | 10.7 | 6.0 | |||
Note: The values shown in the "Average historical excess return of individual stocks by rating (vs. S&P 500, %/yr)" columns represent the average annualized difference in performance between individual stocks and the S&P 500 index, categorized by valuation rating. By adjusting for market performance (subtracting the S&P 500 return), this metric isolates each stock’s relative performance — filtering out broad market movements that can affect absolute returns. This adjustment helps investors focus on how much of a stock's return is explained by its own fundamentals and valuation versus general market trends.
These averages are calculated using historical data points where both a valuation rating and subsequent 12-month performance were available. While deviations occur across indices and periods, the results generally show that stocks rated Strong Buy have historically outperformed those rated Strong Sell by a wide margin on average, with intermediate ratings falling logically in between. This consistent directional relationship suggests the valuation models provide meaningful signals about relative stock performance over time. However, these findings reflect statistical tendencies, not certainties — past patterns may not predict future results.
About InvestorsCraft
InvestorsCraft is an independent investment-research platform that fuses time-tested value-investing principles with cutting-edge AI valuation models to help active investors spot under- and over-valued equities with confidence. Our platform features proprietary and exclusive valuation methodologies—including advanced discounted cash flow (DCF) models and sophisticated artificial intelligence-driven analyses. By uniquely combining these methodologies, InvestorsCraft delivers powerful insights that allow investors to quickly identify promising opportunities and mitigate investment risks, empowering smarter investment decisions backed by rigorous research and empirical validation.
Key Features
Comprehensive Stock Screeners
- AI Valuation Screener (Artificial Intelligence Screener):Leverages proprietary AI algorithms to assess stock valuations. It presents users with actionable insights based on historical AI predictions and includes statistical metrics to measure historical model accuracy. Investors can easily gauge the effectiveness of specific AI-derived parameters through detailed backtesting results.
- Intrinsic-Value (DCF) Screener (Intrinsic Value Screener):Employs InvestorsCraft’s exclusive DCF models, allowing users to identify stocks trading significantly below or above their calculated intrinsic values. Each parameter is supported by comprehensive historical data, enabling investors to backtest selected inputs and refine their investment strategies confidently.
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Comprehensive Company Snapshot Pages
Each stock overview page, such as the one for Apple (AAPL), provides investors with an in-depth snapshot of key financial data, critical performance metrics, and dynamic visualizations. InvestorsCraft clearly presents vital indicators such as earnings growth, profitability ratios, debt levels, dividend history, and detailed financial statements. Enhanced with intuitive charts, historical trends, and comparative benchmarks, these pages enable users to quickly and confidently assess a company’s financial health, competitive position, and long-term investment potential.
Interactive Intrinsic-Value (DCF) Valuation Pages
InvestorsCraft’s interactive intrinsic-value (DCF) valuation pages, exemplified by Apple's intrinsic-value page, allow investors to explore comprehensive, scenario-based valuation analyses. Users can easily adjust key financial assumptions such as revenue growth, profit margins, capital expenditures, and discount rates, observing immediate recalculations of intrinsic value in real-time. The intuitive visualizations and sensitivity analyses clearly illustrate how changing individual assumptions impact valuation outcomes, providing investors with unparalleled insight into intrinsic-value drivers and enabling better-informed decision-making.
AI Valuation Summary Pages
Our AI valuation summary pages, like Apple’s AI valuation page, provide investors with succinct yet comprehensive AI-generated assessments of stocks. These pages feature proprietary machine-learning models trained on extensive historical data to deliver probability-weighted valuation outcomes, confidence indicators, and detailed model performance metrics. Investors can clearly evaluate the historical accuracy of these predictions, helping them calibrate their confidence in AI-driven recommendations and facilitating well-rounded, data-driven investment strategies.
Summary
By integrating advanced valuation methodologies, robust analytical tools, and comprehensive historical testing, InvestorsCraft equips investors with the critical insights necessary to outperform the market and achieve superior investment outcomes. Our innovative platform continues to set the standard in investment research, empowering users to invest with increased confidence, clarity, and precision.