Factors Directory

Quantitative Trading Factors

Total assets market value ratio

Value FactorFundamental factors

factor.formula

Total assets to market value ratio:

This formula calculates the ratio of total assets to total market capitalization at a specific point in time (t).

  • :

    The company's total assets at the end of the most recent reporting period

  • :

    The total market value of the company's common stock at the end of the most recent reporting period

factor.explanation

The total asset-to-market ratio is a commonly used indicator in value investing. The higher the ratio, the lower the market value of the company's assets, which may indicate that the market underestimates the company's value; conversely, the lower the ratio, the higher the market valuation of the company. Investors can combine other financial indicators and market information to comprehensively evaluate the company's investment value. It should be noted that companies in different industries have different asset structures and business models, so caution is required when making cross-industry comparisons.

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