S&P adjusts new rules; the classification of growth stocks and value stocks is set to undergo a reorganization
2026-10-24 11:37:51
According to CoinMeta, S&P Dow Jones Indexes has adjusted the rules for classifying stocks as growth or value stocks, which may lead to significant changes in the composition of relevant indices. As announced by the company on Friday, the new rules will take into account intangible assets, projected earnings, and free cash flow when assessing whether a company's stock price is relatively undervalued. Additionally, indicators measuring a company's growth potential will no longer include the stock price momentum over the past 12 months. This adjustment will officially take effect during the annual index reconstitution before the market opens on December 21st, and it may force funds that track these indices to adjust their holdings to match the new list of constituents. Industry research analyst James Saft estimates that at least $375 billion in passive fund assets are linked to the affected indices.
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Source:Jin10 Data
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