101 days ago • Posted by Charles-Henry Monchau
The Soaring Value of Intangible Assets in the S&P 500
Visual Capitalist created an excellent graphic looking at the value of intangible assets within the S&P500 and how this has materially changed the valuations as the stocks move up the value chain of their respective industries. Intangible assets currently account for 90% of the index’s total assets. Not only is this a historical high—it’s a nod to just how prevalent technology has become in our lives. Intangible assets are holdings that don’t carry any physical or financial embodiment. This includes R&D, intellectual property, and computerized information such as data and software. While they’re often difficult to value due to certain accounting practices, today, intangibles are worth over $21 trillion. The value of intangible assets in dollar terms has risen from $122 billion in 1975.