Talent Valuation: Accelerate Market Capitalization through Your Most Important Asset

Introduction

Market cap growth in the twenty-first century has evolved and become a function of human capital productivity. As recently as 1980, the difference between book value and market value for the average U.S. corporation was not significant. However, by the year 2000, the average company’s market value exceeded book value by about 75%.¹ This excess value that the market placed on the average company’s share price was for the most part attributable to the value of intangible assets, specifically intellectual capital in the form of brands, trademarks, patents, and other proprietary inventions and commercial secrets. In fact, a quadrupling of the Dow Jones Industrial Average over the last 20 years to a market capitalization of $4.6 trillion ...