Price & Market BehaviorCore researchlive in production

R&D-Intensity Value

Updated dailyData needs: mediumlong only

In plain terms

Standard value factors mistake R&D-heavy tech firms as 'growth' because R&D is expensed not capitalized. Adding R&D back uncovers hidden value.

How it works

Standard book-to-market based value factors mis-classify R&D-heavy firms as "growth" because R&D is expensed (not capitalized) under GAAP. Peters-Taylor 2017 + Eisfeldt-Kim-Papanikolaou 2020 show that adding capitalized R&D back to book equity restores the value premium for tech/biotech and reverses the apparent "value-is-dead" finding of the 2010s. We compute an R&D-intensity metric per ticker and overweight it when it's accompanied by a price drawdown — the intangibles-implied value play.

Live results

0 times picked on its own · 3 times inside a blend (3 beat the stock) · updated 2026-06-06

This strategy is a frequent ingredient in blends that combine a few strategies on one stock. It has contributed to 3 such blended picks (3 of which beat simply holding the stock). Picking it on its own is only one of the ways it shows up.

How its picks scored vs. buy & hold

Each pick is graded on a recent year it was never tuned on, against simply owning the same stock

Where its edge concentrates

Share of picks in each company-size group that beat buy & hold

How often it trades

Active vs. patient. Bars on the left mean it waits for rare setups; bars on the right mean it trades often

Return vs. buy & hold

How much each pick beat or trailed simply owning the stock over the test year (extreme microcap moves trimmed)

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Data dependencies

Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
Fundamentals
Quarterly fundamentals (income, balance, cash-flow) from FMP + SEC.

Expected edge

Tested over: 1975-2005 (Lev-Sougiannis)

See the source research for the original effect size; a modern replication on new data may be weaker.

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