The higher the R&D intensity to market value ratio, the greater the company's R&D investment relative to its market value, which is generally considered to be a reflection of the company's confidence in its future growth potential. However, high R&D investment does not necessarily translate directly into high returns, so this factor needs to be considered in combination with other factors. In addition, this factor may vary significantly between industries. For example, the technology industry usually has higher R&D investment, so when applying this factor, it is necessary to consider industry attributes for standardization or group analysis. If the R&D expense data is sparse or unreliable, you can consider replacing it with management expenses, but it should be noted that management expenses are different from R&D expenses in nature, and substitution may reduce the effectiveness of the factor. This factor mainly reflects the input side of the company and can be used in combination with factors that reflect the output side of the company for comprehensive analysis. Empirical studies have shown that there is a certain positive correlation between the R&D intensity to market value ratio and the excess return of stocks. This factor can be used as a reference for stock selection strategies.