--- title: "Vanguard S&P 500 ETF (VOO) Fundamentals Report · Feb 8, 2026" author: "DeepValues Research" publisher: "DeepValues Research (DeepValues / LuLu Ventures LLC)" type: "Deep Value Intelligence component report" ticker: "VOO" company: "Vanguard S&P 500 ETF" date: "2026-02-08" language: "en" section: "Company Research" canonical_url: "https://research.deepvalues.ai/company/voo/2026-02-08-fundamentals-report/" markdown_url: "https://research.deepvalues.ai/company/voo/2026-02-08-fundamentals-report/index.md" license: "CC BY 4.0" license_url: "https://creativecommons.org/licenses/by/4.0/" cite_as: "DeepValues Research, Vanguard S&P 500 ETF (VOO) Fundamentals Report · Feb 8, 2026, https://research.deepvalues.ai/company/voo/2026-02-08-fundamentals-report/" publisher_url: "https://deepvalues.ai" app: "https://deepvalues.ai" api: "https://app.deepvalues.ai/developers" data_note: "Reports are dated snapshots. Current data via the DeepValues API: https://app.deepvalues.ai/developers" disclaimer: "Educational research, not investment advice." --- This report provides a comprehensive 10-year historical analysis of the **Vanguard S&P 500 ETF (VOO)** as of February 8, 2026. Applying Warren Buffett’s value investing methodology to an ETF requires viewing the S&P 500 as a "single giant conglomerate" representing the core of the U.S. economy. ### **1. 10-Year Comprehensive Historical Data (Aggregate/VOO-Equivalent)** The following metrics are scaled to VOO’s price levels (approximately 1/10th of the S&P 500 Index) to provide a "per share" view of the underlying fundamentals. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025* | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Market Price ($)** | 223.90 | 267.30 | 250.60 | 323.00 | 375.60 | 476.60 | 383.90 | 476.90 | 540.00 | **635.24** | | **Market Cap ($T)** | 19.3 | 22.1 | 21.0 | 26.7 | 31.6 | 40.1 | 32.1 | 40.0 | 45.8 | **50.2** | | **P/E Ratio (TTM)** | 20.9 | 21.6 | 16.1 | 21.6 | 27.1 | 22.8 | 17.3 | 21.5 | 22.4 | **21.4** | | **P/B Ratio** | 2.85 | 3.18 | 2.90 | 3.53 | 3.91 | 4.70 | 3.47 | 4.04 | 4.29 | **4.60** | | **EPS ($)** | 10.63 | 12.45 | 15.16 | 15.71 | 13.98 | 20.82 | 21.91 | 22.15 | 24.24 | **27.15** | | **Revenue ($)** | 110.1 | 117.5 | 128.0 | 133.5 | 126.5 | 151.0 | 172.0 | 179.5 | 189.0 | **200.5** | | **Gross Profit ($)** | 44.0 | 47.0 | 51.2 | 53.4 | 50.6 | 61.9 | 70.5 | 73.6 | 77.5 | **82.2** | | **Net Income ($)** | 10.63 | 12.45 | 15.16 | 15.71 | 13.98 | 20.82 | 21.91 | 22.15 | 24.24 | **27.15** | | **ROE (%)** | 13.5% | 14.8% | 17.6% | 17.2% | 13.1% | 20.5% | 19.8% | 18.2% | 19.1% | **19.4%** | | **ROIC (%)** | 11.5% | 12.2% | 13.5% | 13.2% | 10.5% | 15.5% | 15.0% | 14.2% | 14.8% | **15.2%** | | **Op. Margin (%)** | 13.8% | 14.2% | 14.5% | 14.4% | 12.8% | 15.4% | 15.2% | 14.9% | 15.1% | **15.1%** | | **Net Margin (%)** | 9.7% | 10.6% | 11.8% | 11.8% | 11.1% | 13.8% | 12.7% | 12.3% | 12.8% | **13.5%** | | **Net Margin Gain** | +0.2% | +0.9% | +1.2% | +0.0% | -0.7% | +2.7% | -1.1% | -0.4% | +0.5% | **+0.7%** | | **Debt/Equity** | 1.10 | 1.12 | 1.15 | 1.15 | 1.20 | 1.18 | 1.16 | 1.22 | 1.18 | **1.16** | | **Free Cash Flow ($)** | 11.2 | 13.1 | 15.9 | 16.5 | 14.7 | 21.9 | 23.0 | 23.3 | 25.5 | **28.5** | | **Div. per Share ($)** | 4.70 | 5.08 | 5.26 | 5.81 | 6.01 | 6.19 | 6.53 | 7.15 | 7.56 | **8.19** | *\*2025/2026 figures based on aggregate estimates and preliminary reported data.* --- ### **2. Current vs. Historical Average Comparison** | Metric | Current (2026) | 10-Year Average | Comparison/Trend | | :--- | :--- | :--- | :--- | | **P/E Ratio** | 21.4 | 18.9 | **Overvalued:** Currently 13% above historical mean. | | **ROE (%)** | 19.4% | 17.3% | **Superior:** Reflects high efficiency of current Tech-heavy index. | | **Net Margin** | 13.5% | 11.8% | **Record Levels:** Driven by AI-led cost efficiencies. | | **Div. Yield (%)** | 1.42% | 1.85% | **Lower Yield:** Price has grown faster than distributions. | | **Debt/Equity** | 1.16 | 1.16 | **Stable:** Leverage remains disciplined despite rate hikes. | --- ### **3. Warren Buffett Value Investing Analysis** * **Economic Moat:** VOO possesses the "Ultimate Moat." It is a self-cleansing basket of the 500 strongest U.S. companies. Underperformers are removed and replaced by emerging giants. This "survivorship bias" creates a durable competitive advantage for the index as a whole. * **Financial Strength:** The aggregate Net Debt/EBITDA of 1.4x-1.6x is remarkably healthy. The cash position of the top holdings (AAPL, MSFT, GOOGL) provides a massive safety net that offsets the leverage in the industrial and utility sectors. * **Predictable Earnings:** While the index is subject to market cycles (e.g., 2020), the 10-year EPS CAGR of ~10.9% demonstrates the long-term earnings power of the American economy. * **Management Performance:** Vanguard's management is purely passive, but the "Capital Allocation" of the underlying companies is evidenced by the rising ROE (from 13.5% to 19.4%). The index effectively allocates capital to the most efficient sectors (Tech/Healthcare) automatically. * **Quality of Business:** High. Revenue predictability is strong due to the sheer diversity of the constituents. Margin stability has actually improved over the decade as the index shifted toward software and services. --- ### **4. Discounted Cash Flow (DCF) Analysis** *Base: 2025 Free Cash Flow per Share = $28.50. Parameters: 10% Discount Rate, 2.5% Terminal Growth.* #### **Scenario 1: CONSERVATIVE (5% Growth)** *Focus: Economic stagnation or high-interest rate drag.* * PV of 10-year FCF: $192.40 * PV of Terminal Value: $227.15 * **Fair Value: $419.55** (Downside of 34%) #### **Scenario 2: AVERAGE (9% Growth)** *Focus: Historical earnings growth trend (5-year CAGR).* * PV of 10-year FCF: $271.35 * PV of Terminal Value: $355.53 * **Fair Value: $626.88** (**Current Price of $635 is Fairly Valued**) #### **Scenario 3: OPTIMISTIC (11% Growth)** *Focus: Continued AI-driven margin expansion and productivity.* * PV of 10-year FCF: $320.12 * PV of Terminal Value: $444.80 * **Fair Value: $764.92** (Upside of 20%) --- ### **5. Key Investment Insights & Red Flags** * **Red Flag (Concentration Risk):** The top 10 holdings now represent over 32% of the index. This makes VOO less of a "broad market" play and more of a "Mega-Cap Tech" play. Any regulatory hit to Big Tech will disproportionately impact VOO. * **Opportunity (Efficiency):** The 0.03% expense ratio means almost 100% of the underlying business growth reaches the investor—a core Buffett requirement for "frictionless" compounding. * **Insight (Margin Structural Shift):** Net margins have moved from a historical 9% baseline to 13%+. If this is a permanent structural shift due to digitization, current valuations are more justified than they appear. --- ### **FINAL INVESTMENT COMMENTARY** **RATIONALE:** VOO is currently trading at a slight premium to its 10-year historical P/E (21.4 vs 18.9), but this is compensated for by significantly higher profitability (ROE of 19.4% vs 13-14% a decade ago). The DCF analysis suggests the market is pricing in an 8.5% - 9% perpetual growth rate, which is historically consistent for the S&P 500. **FINAL VERDICT:** VOO remains a **CORE HOLDING**. While not a "bargain" in the traditional Benjamin Graham sense, it is a "Wonderful Business at a Fair Price," which fits the modern Buffett criteria perfectly. Investors should maintain positions but be wary of the high concentration in technology, which could lead to higher volatility compared to the previous decade. --- ### **Summary Table** | Category | Key Metric/Finding | Analyst Sentiment | | :--- | :--- | :--- | | **Valuation** | 21.4x P/E; 4.6x P/B | **Slightly Overvalued** | | **Profitability** | 19.4% ROE; 13.5% Net Margin | **Exceptional** | | **Growth** | 10.9% 10-Year EPS CAGR | **Strong** | | **Fair Value (Avg)** | **$626.88** | **Fairly Valued** | | **Key Risk** | 32% Top-10 Concentration | **High Concentration** | | **Action** | Long-term Accumulation | **Core Holding** |