Within the last quarter century, intellectual capital has emerged as the leading asset class. The term "intellectual capital" refers generally to traditional Intellectual Property assets - patents, trademarks and copyrights. At Ocean Tomo, we uniquely include within the definition of  "intellectual capital" special client intangible assets, especially corporate and government preference rights.

Recent and anticipated changes in accounting rules and securities reporting will further the recognition of intangible assets. The growth in the value of Intellectual Capital Equity® can be seen when evaluating the market capitalization of the S&P 500 as shown in the chart below.

Components of S&P 500 Market Value To request a copy of the full results of this study, please email Info@OceanTomo.com

Ocean Tomo has related an update to the Annual Study of Intangible Asset Market Value (IAMV). The study examines the component of market value, specifically the role of intangible assets across a range of global indexes.

While emphasis is often of technology-driven intangible assets such as patents and trade secrets, brand value is also an important component of IAMV. This year for the first time we compare IAMV calculations to Interbrand’s Best Global Brands 2016 calculation of brand value. Comparing the 39 companies appearing on both the S&P 500 and the Interbrand list suggests brand value may represent roughly one quarter or more of average IAMV.

Also for the first time, we have expanded our IAMV study beyond the S&P 500 to explore the components of value in several key international markets. Stock market indexes from Europe, China, Japan and South Korea were selected and analyzed to determine the comparable role of intangible assets.

 


*Burk, Kathleen, "Morgan Grenfell 1838-1988: The Biography of a Merchant Bank", Oxford University Press, 1989, p. 5.
**Ibid., p. 98.
***Merchant Banking: Past and Present, by Valentine V. Craig. Valentine V. Craig is a Chartered Financial Analyst in the FDIC's Division of Research and Statistics.