Shifting Values from Tangible to Intangible

• For decades, companies have increasingly recognized the need to account for non-financial value drivers, externalities, and other performance measures that influence enterprise value creation and thus help investors make informed decisions. In turn, investors increasingly rely on and request non-financial information to assess corporate performance and value.

• In 1975, tangible assets composed 83 percent of the market value of the S&P 500. In 2020, the value of tangible assets accounted for only 10 percent of the S&P 500 market value, while intangible assets represented 90% of the market value.

Source: https://www.oceantomo.com/wp-content/uploads/2022/03/ocean-tomo-iamv-sp-500-chart-wave-scaled.jpg