ProShares Trust II (YCS) Stock Analysis
ProShares Trust II
▾ What's in the 56/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend, DCF applicability). See the Financial Health section for the full balance-sheet read.
How to read YCS (bank / insurer)
Banks and insurers are valued on what they earn on their capital, not on free cash flow — a normal DCF misleads here.
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Bank / Insurance lens (P/TBV + ROE) ↓
Price-to-tangible-book versus return-on-equity is how analysts actually judge a bank cheap or rich.
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Financial-health screens ↓
Watch the trend in profitability and asset quality, not the (not-applicable) bankruptcy score.
Football field: where does the price sit?
Different valuation methods produce different fair-value ranges depending on assumptions. Plotting them together lets you see at a glance whether the current price is reasonable across approaches, or only one specific lens.
Industry multiples sourced from: broad market average (sector unknown). See the Peer Basket section below for the peer comparison and its limited-comparables caveat.
How does YCS stack up against its closest peers?
We take the 8 same-industry companies most similar to YCS (similar size) and check what investors are paying for each dollar of their revenue (or profits). If YCS is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, FCF yield (in the table) is usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 8 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| SVXY | ProShares Trust II | Investment Banking | $16.3B | — | — | — | 10.5% |
| PHYS | Sprott Physical Gold Trust | Investment Banking | $16.4B | — | 2.7x | — | 36.3% |
| PSLV | Sprott Physical Silver Trust | Investment Banking | $14.8B | — | — | — | — |
| FBTC | Fidelity Wise Origin Bitcoin Fund | Investment Banking | $13.6B | — | — | — | — |
| UGL | ProShares Trust II | Investment Banking | $13.2B | — | — | — | 13.0% |
| GBTC | Grayscale Bitcoin Trust ETF | Investment Banking | $11.1B | — | — | — | — |
| UCO | ProShares Trust II | Investment Banking | $10.5B | — | — | — | 16.3% |
| ZSL | ProShares Trust II | Investment Banking | $8.7B | — | — | — | 19.7% |
How to value a bank (not a DCF question)
A bank's economic engine is the shareholder equity on its balance sheet — what the accountants say is left over after all loans, deposits, and liabilities are netted out. The bank earns a percentage on that equity each year (its ROE). So the two questions are: (1) what are you paying per dollar of equity (Price / Book)? and (2) how much is that equity actually earning (ROE)? Free cash flow doesn't work here — banks lend out their cash for a living.
Why it matters: For banks and insurers, book value is the regulatory capital they earn returns on. P/B is the cleanest comparison: 1.0× means buying the bank at the same price the accountants say it's worth.
Reference: 0.8–1.2× = fair for average bank · 1.5–2.0× = solid franchise · >2.5× = premium · <0.8× = potentially cheap or distress
Full explanation →
Premium to book — market expects above-average returns on this equity.
Why it matters: For a bank, ROE is the engine. A bank earning 15% on equity will compound book value at ~15%/year if it retains earnings. Combined with P/B, ROE tells you whether a premium price is supported by returns.
Reference: <8% = weak · 10–12% = solid · 15%+ = excellent · >20% sustained = exceptional franchise
Full explanation →
Why it matters: For banks especially, ROA isolates underwriting and operating efficiency from leverage. Two banks with identical ROE may have very different ROAs — one earning it cleanly, one earning it on borrowed money.
Reference: <0.8% = weak · 1.0–1.2% = solid · >1.5% = excellent (very rare for big banks)
Full explanation →
ROA differs from ROE because banks borrow ~10× their equity. Big asset base, smaller equity sliver.
Why it matters: High P/E = market expects fast growth or you are overpaying. Low P/E = market expects slow growth or the stock is cheap (sometimes for good reason).
Reference: 12–20 for mature businesses · 25–50 for growth · 80+ for speculative
Full explanation →
Note: this lens skips Altman Z-Score and Piotroski F-Score (validated on industrial companies, not banks). For deeper bank-specific health analysis: check the 10-K's Tier 1 capital ratio, Non-Performing Loan ratio, and CET1 — these are what regulators actually monitor.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Altman Z was calibrated on industrial firms and doesn't apply to banks or insurers — their balance sheets are dominated by loans/securities, not working capital. See the Bank Valuation Lens above for P/B, ROE and ROA — the metrics regulators and analysts actually use to assess bank solvency.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
Piotroski F was built for non-financial firms (gross margin, asset turnover, current ratio all assume an industrial cost structure). For banks, the equivalent quality signals are efficiency ratio, net interest margin, and provision coverage — see the Bank Valuation Lens above.
What if you assume different inputs?
Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 9.0%, the figure our model used for YCS. Open Advanced to also change beta, growth and the rate path.
Note: at default inputs this calculator mirrors the headline model's three-scenario weighting (conservative/base/optimistic, 40/35/25), so its opening value should land close to the headline intrinsic value of $12.62. A small gap is rounding; a large one would be a data problem — and we check for it below.
7.5% — beta-based (CAPM), from this stock's BetaBeta — How much the stock moves when the overall market moves. 1.0 = moves with the market; 1.5 = moves 50% more than the market.
Why it matters: Higher beta = more volatile = should demand higher discount rate. Low beta stocks (utilities, consumer staples) move less.
Reference: Most stocks 0.5–1.5 · Defensives ~0.3 · High-vol tech ~1.5–2.0
Full explanation → of 0.55. The safe Treasury rate plus a premium scaled by how much more (or less) volatile the stock is than the market.
10.0% — sector/quality tier. A simpler hurdle set by industry and business durability: lower for stable, wide-moat companies; higher for speculative or micro-caps.
The headline value and this calculator start at 9.0% — the mid-point of the two (we use the more conservative sector/quality rate when model applicability is limited or the balance sheet is stretched). Drag the slider to the other rate to see the full range.
A full intrinsic value isn't shown for YCS because it's valued with a bank residual-income model this quick calculator doesn't replicate — see our published value above and the sector lens for the right metrics.
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⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
YCS (ProShares Trust II) is deep_overvalued; the price is 325.2% ABOVE intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation → (a 325.2% premium). The market may be paying for potential future growth in its investment banking activities, which is not fully captured by the backward-looking model. The biggest risk to our model's base assumptions proving too high is the continuation of negative operating cash flow, which was negative in the latest period and only positive in 2 of the last 5 years.
As of 11 days ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Changes in assets under management (AUM)
- Trends in USD Index (DXY)
- Quarterly net income and operating cash flow
The trend, in plain numbers (2024 → 2025)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Swung to a profit of $1.71B (from a loss the prior year).
- Free cash flow is negative at -$246.3M — the cash burn widened vs last year.
Management & Leadership
Limited executive data available for ProShares Trust II, which is an exchange-traded fund (ETF) issuer. Michael L. Sapir is the CEO of ProShare Advisors LLC, the investment advisor for ProShares ETFs, and has served in this role since the firm's inception.
What They Make
YCS is an exchange-traded fund (ETF) that aims to provide inverse exposure to the U.S. Dollar Index. Investors and traders pay for shares to gain or hedge against movements in the dollar.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
The market prices YCS at a premium of +325.2% to the model's intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation →, likely anticipating future performance in its investment banking activities or a sustained demand for inverse dollar exposure. This optimism persists despite the latest operating cash flow being negative and the company's low franchise/durability score of 0/5, suggesting the market is assigning value to potential market movements or strategic positioning not captured by historical financials.
Three Scenarios, Weighted
| Scenario | IV | vs Price | Weight |
|---|---|---|---|
| Conservative | $12.44 | -77.3% | 40% |
| Base | $12.69 | -76.8% | 35% |
| Optimistic | $12.80 | -76.6% | 25% |
| Weighted | $12.62 | -76.9% | 100% |
Business Model & Valuation
How They Make Money
As an ETF, YCS typically distributes income to shareholders and manages its portfolio to track its index, rather than engaging in traditional capital allocation like buybacks or debt reduction. No specific dividend or buyback rates are available from current data.
Residual Income Medium
Balance-sheet financial (Investment Banking): residual income model - book value is meaningful anchor.
Show advanced inputs
| SectorDefault | 8.0% |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project net interest income and fee-income lines independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Net income was positive in the latest period, though only profitable in 2 of the last 5 years.
Geography & Markets
As an ETF tracking the U.S. Dollar Index, YCS primarily reflects the performance of the U.S. dollar against a basket of major currencies. Its investor base is global, though its underlying focus is on the U.S. currency market.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)31.9NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (5 notes — click to expand/collapse)
Guardrail Notes (5)
- Financial sector: using residual income model. IV = Book Value + PV(excess earnings).
- Discount rate floored from 8.8% to 9.0% (financial sector minimum).
- Terminal growth set to 1.6% — the lowest of the applicable caps (binding: 80% of near-term growth (2%)). We use one effective terminal rate everywhere on the page.
- Price is 4.3x model IV - market may be pricing optionality, narrative catalysts, or margin expansion beyond what trailing cash flows support.
- Discount rate floored from 7.5% to 9.0% (financial sector minimum).
FINANCIALS
Financial Statements (5-year tables — click to expand)
From ProShares Trust II's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | — | 1.7B | $5.80 |
| 2024 | — | -39.4M | $-0.13 |
| 2023 | — | -2.5B | $-8.41 |
| 2022 | — | 95.8M | $0.32 |
| 2021 | — | -1.7B | $-5.71 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC | Free Cash Flow |
|---|---|---|---|---|
| 2025 | -246.3M | — | — | -246.3M |
| 2024 | 208.8M | — | — | 208.8M |
| 2023 | -1.5B | — | — | -1.5B |
| 2022 | 1.2B | — | — | 1.2B |
| 2021 | -3.2B | — | — | -3.2B |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a EPS basis (residual-income model), not this single year.
Balance Sheet
| Total Assets | 6.1B |
| Total Liabilities | 338.9M |
| Equity | 5.7B |