Otos Total Market Index

Monday, September 18, 2017: The Otos Total Market Index has advanced by 24% relative to the index of long treasury bonds since the June, 2016 low. Current price to sales(valuation) is near the highest level in the record of the Index.

We have collected second quarter sales data for 1143 of the 1157 comparable record companies in the Otos Total Market Index representing100% of the capital value. The Index capital weighted average sales growth rate is 8.5%. The proportion of Index market capital accounted for by rising sales growth companies is down to 58.2%, compared to 65.3% last quarter.

Currently, sales growth is low in the record of the Otos Total Market Index but higher than last quarter.

The proportion of total market capital accounted for by rising gross profit margin companies is down to 54.7% compared to 56.4% last quarter.

The Index is recording a rising gross margin. Inventories are down, improving the chance of a further increase in the gross margin. SG&A expenses are low in the record of the Index, but falling. Higher gross margins and lower SG&A expenses are producing a leveraged acceleration in EBITDA relative to sales. The shares have been highly correlated with the direction of the profit margins. Interest costs are low in the record of the Index and rising. Higher interest costs not only slow the free cash flow growth rate of the Index, but are often associated with lower valuation.

Otos Total Market Index SharpPlot version is 2.43 Paint the paper ===== Border ===== Region ===== X-Axis Ticks ===== X-Axis tickmarks Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 1 1.5 2 3 for X-axis labels 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Heading, subheading and footnotes ===== Heading Otos Total Market Index Subheading Gross Profit Margin vs Stock Price Index Footnotes Comment Start of Line Chart =========== Points follow ... Line Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 10 15 20 25 30 35 40 45 Start of Line Chart =========== Points follow ... Line bump key Key ===== Key - Line Key - Line Market Price Index vs Long Treasury Bond Gross Profit Margin