1. CAC 40

2. Contents
Introduction
CAC Family
Review and Selection Criteria
Performance
Components
Calculations
Impact of Eurozone Crisis

3. Introduction
French stock market index
CAC 40: Continuous Assisted Quotation
Launched on 31 December 1987 with base
value of 1000
1st December 2003
Total Market Free Float
Cap Market Cap
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

4. Introduction
Index Type Price Index
Governance Structure Conseil Scientifique & NYSE Euronext
Weighting Free float adjusted market cap
Capping 15 %
Calculation Frequency 15 s
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

5. CAC Family
CAC 20
 20 constituents
 20 highest ranking companies not
included in the CAC 40
 Base date: 31/12/2002
 Base level: 3000
CAC large 60
 Companies included in CAC 40
and CAC Next 20
 60 constituents
 Base date: 03/01/2006
 Base level: 5000
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

6. CAC Family
CAC mid 60
 The 60 highest raking
companies not included in the
CAC Large 60
 60 constituents
 Base date: 31/12/2002
 Base level: 3000
SBF 120
 All companies included in CAC
Large 60 and CAC Mid 60
 120 constituents
 Base date: 28/12/1990
 Base level: 1000
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

7. CAC Family
CAC small
 Continuation of the CAC Small 90
since March 2011
 Companies not included in SBF
120
 Variable constituents
 Base date: 31/12/2002
 Base level: 3000
CAC mid & small
 Continuation of CAC Mid & Small
190 since March 2011
 All companies included in CAC Mid
60 and CAC Small
 Variable constituents
 Base date 30/12/2002
 Base level 3000
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

8. Review and Selection
Review
 To ensure that selection and weighting reflects the underlying market
or market segment
 Annual Review: Effective after close of 3rd Friday of September
 Quarterly Reviews: Effective after close of 3rd Friday of December,
March, and June
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

9. Review and Selection
Selection Basis:
 Combined Ranking:
 the value of Regulated Turnover observed over a 12-
month period
 the free float adjusted market capitalization on the
Review Date
 Minimum Trading Velocity
 Minimum Free Float
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

10. CAC 40 : Index and Events
Dot Com
Bubble
Subprime
Crisis
Eurozone
Crisis
Free Float
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

11. Performance
Average Yearly Volatility (%)
40
30
20
10
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Annual Return
% Best Performance Since 2000
1 year Performance Date
-23.39
2 years Day 11.18% 13/10/2008
-11.20
3 years Month 13.41% October 2002
-3.96
5 years Year 20.86% Q3 2009
-9.33
10 years -3.81
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

12. CAC40 v/s GDP Growth Rate v/s Govt Bond yield
6 6000
5
5000
4
3
4000
2 GDP Growth rate (%)
1 3000 Govt Bond yield
0 CAC40
2000
-1
-2
1000
-3
-4 0

13. Components
Components – Industry wise
Financial
2 3
Communicatios
4 Utilities
9 Consumer, Non
Cyclical
Consumer, Cyclical
4
Basic Material
Diversified
2 Energy
1 Industrial
6
2 Technology
4
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

14. Company Wise Analysis
Co. TOTAL SANOFI – BNP Paribus
Aventis
Sector Oil & Gas Healthcare Banking
Rank (as per mcap) /Weight 1/ 13.5 2/ 9.92 3/ 5.15
(%)
Mcap (in Euro million) 84,176.42 65,239.44 31,220.08
Shares Outstanding (million) 2,358.54 1,341.04 1,207.74
Beta .67 .58 1.39
52 week: High – Low (in Euro) 44.55 – 29.40 56.82 – 42.85 59.93 – 22.72
P/e ratio 6.69 13.58 4.77
Dividend Yield (%) 6.39 5.18 8.12
Dividend Payout Ratio (%) 53.21 - 39.49
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

15. Recommendation/ Co. TOTAL SANOFI – Aventis BNP Paribus
Nov’ 11 Aug’ 11 Nov’ 11 Aug’ 11 Nov’ 11 Aug’ 11
Buy 13 12 12 13 18 16
Outperform 6 4 6 4 2 3
Hold 19 18 9 11 8 10
Underperform 2 2 0 1 2 1
Sell 1 1 1 0 0 0

16. Calculations
The general formula for Price Index:
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

17. Calculations
The total return index calculation
Transpose the announced dividend payment into index points
The dividend is assumed to be reinvested at the close of the ex-date
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

18. Comparisons with Europe Market Cap
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

19. Impact of Eurozone Crisis
German Bond Auction flopped
Italy new government – vulnerable
Portugal rated as Junk by Moody’s -25%
France rating AAA, however the
investor sentiment low
Its government bond yield is high
Part of the bailout fund European
Financial Stability Facility (EFSF)
Focus on the upcoming bond auctions in order to the judge the
investor sentiments
Impact of
Review &
Introduction CAC Family Performance Components Calculations Eurozone
Selection Criteria
Crisis

20. Presented By:
Apoorva Sharma
Deepika Misra
Thank You Devika Bhatia
Gohan Kumar
Kartikey Bhargava
Nikhil Marwah