The 90% Reality: Why Book Value is Dead

90% of Value

Percentage of S&P 500 Market Cap that is Intangible Assets

The Research

In 1975, tangible assets (factories, inventory, land) comprised 83% of the S&P 500's value. Today, the script has flipped. According to J.P. Morgan's *Guide to the Markets*, **90% of the S&P 500's market capitalization is now "Intangible Assets"** (IP, Brand, Data, Human Capital). This means traditional GAAP accounting, which excels at measuring factories but fails at measuring talent, is effectively blind to 90% of the value drivers in the modern economy.

https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/guide-to-the-markets/
Key Finding

Intangible assets now comprise 90% of the S&P 500's total market value.

The Archalos Thesis

We believe "Book Value" is a relic. If 90% of a company's value is intangible, then the only way to assess its true worth is to audit its intangible drivers: Culture, Leadership, and Brand. We do not look for "cheap" stocks based on Price-to-Book; we look for "mispriced" stocks based on the quality of their intangible infrastructure. We are buying the 90%, not the 10%.

Invest With Us

Read More Case Studies

Stress Cost

Stress Cost

Stress Cost

Workplace Stress Costs 1.5x the Engagement Gain

Read more

Institutional Mandate

Institutional Mandate

Institutional Mandate

The Rise of the 'Pro-Social' Proxy Vote

Read more

Earned Growth

Earned Growth

Earned Growth

NPS Leaders Grow 2x Faster Than Peers

Read more

Digital Culture

Digital Culture

Digital Culture

Why 84% of Digital Transformations Fail

Read more

Disclosure Alpha

Disclosure Alpha

Disclosure Alpha

Transparency as a Proxy for Management Quality

Read more

Small Cap Ethics

Small Cap Ethics

Small Cap Ethics

Small-Cap "Sin Stocks" Underperform by 1.1% Monthly

Read more

Culture Premium

Culture Premium

Culture Premium

Strong Cultures Drive 4x Revenue and 12x Stock Growth

Read more

Investor Demand

Investor Demand

Investor Demand

The Human Capital Information Gap

Read more
See all Case Studies
Ready to invest?

Your values. Your performance. One portfolio.

Stop choosing. Start compounding the kind of capital you're proud to own.

We offer digital onboarding with a simple online form — you can have a fully-funded Archalos account in just a few days, custodied at Charles Schwab or Fidelity.

Schedule a callOpen an account