Ocean Tomo releases an update to the Intangible Asset Market Value Study providing interim 2020 results focused on the role of intangible assets across a range of global indexes subsequent to the outbreak of the COVID-19 Pandemic. Final results for 2020 will be released in early 2021.
September 22, 2020; Chicago, IL Ocean Tomo, LLC, the intellectual capital merchant banc™ firm, released interim results for the Intangible Asset Market Value (IAMV) Study, that examines the component of market value, specifically the role of intangible assets across a range of global indexes.
Since 2017, Ocean Tomo has calculated and reviewed the intangible asset market value (IAMV) of the S&P500 index components. Between 1995 and 2015, the share of intangible asset market value increased from 68% to 84%. In July, Ocean Tomo updated the IAMV Study to investigate the economic effects of the novel coronavirus. We find that COVID-19 has accelerated the trend of increasing IAMV share, with intangible assets now commanding over 90% of the S&P500 market value. This trend holds for the S&P Europe 350 index as well, albeit to a lesser extent, with an increase from 71% in 2015 to 74% in 2020.
Given that the coronavirus has affected all countries to some extent, Ocean Tomo also investigated the effects COVID-19 has had on Asian market values. We find that, in China, Japan, and South Korea, COVID-19 has resulted in a decline in IAMV share in the Shanghai Shenzen CSI 300, the Nikkei 225, and KOSDAQ Composite Index, respectively.
While part of this is explained by reporting differences and higher volatility compared to the S&P500 IAMV, South Korea has also been notably lauded for its success in controlling the outbreak within its borders, while never fully locking down. The economic effects associated with its more successful pandemic response than its regional (and global) neighbors could have had more severe consequences for intangible asset values.
Matthew Johnson of Ocean Tomo observes that “over the past 35 years, the U.S. and developed world economies have experienced an economic inversion. These markets are being transformed from their industrial manufacturing base to a more innovation-driven foundation. This shift is one of the most under-exploited themes in contemporary economics, finance, and investing, particularly outside the U.S.”.
To learn more, about this interim update, download the Intangible Asset Market Value Study here. To explore this topic and its implications for your global intellectual property assets and strategies, please contact Matt Johnson (+1 312 327 8188 | Matthew.Johnson@jsheld.com) for further assistance.
About Ocean Tomo
Ocean Tomo, the Intellectual Capital Merchant Banc™ firm, provides companies with financial services related to intellectual property and intangible assets including financial expert testimony, intellectual property and complex financial instrument valuation, strategy consulting, risk & regulatory compliance, patent analytics, investment advisory, innovation management consulting and transaction brokerage.
Our Opinion, Management, and Advisory Services are built upon more than three decades of experience valuating intellectual property in the most rigorous of venues – State, Federal and international courts. Our financial and market experts along with leading technologists provide a unique understanding of the contributory value of proprietary innovation. This is the cornerstone of our business. This insight permeates every practice and client engagement.
Collectively, Ocean Tomo professionals have completed over 1000 engagements involving IP worth in excess of $10 billion including over 300 valuation and 500 financial damages expert testimony engagements.