Scientific Beta

Investment News New Zealand: "In a recent paper, Scientific Beta lays out a new value benchmark methodology that aims to bring the factor up to speed with the modern economy and trim its tendency to veer off course."

Investment News New Zealand 08/03/2026

"(...) In a recent paper, Scientific Beta lays out a new value benchmark methodology that aims to bring the factor up to speed with the modern economy and trim its tendency to veer off course.

Firstly, Schneller says the traditional value definition based on price-to-book misses the important contribution of intangible assets, such as software, to corporate balance sheets.

"The [value] metrics have not evolved with the economy," he says.

Scientific Beta adds intangible assets into the price-to-book calculation to expand the range of companies that fall under the value umbrella.

"This refinement keeps the economic rationale behind book-to-market intact — reflecting the risk of reversing intangible investments — while avoiding arbitrary redefinitions of value," the paper says. (...)"