# Growth, value stocks set for reshuffle as S&P adopts new rules — retained record

> Retained news record from news:india-et-markets.

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source: [news](https://highsignal.app/data/news) (news:india-et-markets)  published 2026-10-24 04:21 ingested 2026-10-24 10:01

[original source ↗](https://economictimes.indiatimes.com/markets/us-stocks/news/growth-value-stocks-set-for-reshuffle-as-sp-adopts-new-rules/articleshow/135161737.cms)

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The index provider will add intangible assets, forward earnings and free cash flow to the list of factors to define whether a company is cheap relative to its share price, according to a statement Friday. At the same time, 12-month price momentum will be dropped as a criteria to rank a company’s growth potential.
The new rules came after a recent consultation and will take effect at the annual reconstitution before the market open on Dec. 21.
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S&P;’s decision follows a long debate over whether conventional value measures still work. Researchers and money managers have argued that part of value’s long slump reflected flaws in the metrics, especially price-to-book. The adjustment is meant to account for spending on research and other internally developed assets that accounting rules usually treat as expenses rather than balance-sheet assets. Critics say this makes intellectual-property-heavy companies look expensive and can keep them out of value indexes.
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S&P; isn’t the only index provider that has been mulling changes. FTSE Russell is reconsidering the 50/50 split between growth companies and value stocks in its benchmarks due to the dominance of technology giants in the market. That consultation ends Dec. 11.
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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