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Premium alternative data in the era of intangible assets
Discover hidden ALPHA with PTR
A simple concept to maximize investment returns.
Why PTR?
In 2015, 87% of the market value of the S&P 500 firms could be attributed to intangibles on average, compared to 68% in 1995 and 32% in 1985. Knowing the value of intangible assets is becoming increasingly vital for investors.
Patents comprise a significant percentage of intangible assets of businesses.
Patents comprise a significant percentage of intangible assets of businesses.
Big data driven patent valuation
Patent value is the sum of the profits which are generated by a patent during its lifetime.
Worldwide patent databases are cross-referenced with the financial statements of patent holders. Various algorithms are utilized to calculate profits attributable to patents.
Worldwide patent databases are cross-referenced with the financial statements of patent holders. Various algorithms are utilized to calculate profits attributable to patents.
Study finds strong evidence for return predictability of PTR
Low PTR stocks portfolios have earned significant market excess returns even with a simple buy and hold strategy.
PTR strongly dominates other innovation-related variables used in previous studies.
PTR strongly dominates other innovation-related variables used in previous studies.
* simulation results over 20 year period
Price Technology Ratio
Market Cap.
Patent Value
=
PTR: A ratio of a company's market capitalization to the patent value it holds
PTR indicates whether a stock price is overvalued or undervalued by comparing patent value to market price.
Data-driven Patent Valuation
Automatically calculate the monetary value of patents in real time.
Although there are several well-known methods for patent valuation (i.e. income approach, cost
approach, market approach, option approach), it can be difficult to apply these in practice. This is
largely due to the fact that there is insufficient empirical data to support these methods and thus rely
heavily on subjective factors.
approach, market approach, option approach), it can be difficult to apply these in practice. This is
largely due to the fact that there is insufficient empirical data to support these methods and thus rely
heavily on subjective factors.
In order to minimize the subjective analysis involved, Wisdomain developed a big data driven patent
valuation method for estimating the profits generated by patents based on existing industry financial
data and patent data.
valuation method for estimating the profits generated by patents based on existing industry financial
data and patent data.
Download a complete patent valuation report in seconds
Income approach valuation based on factual data
Enter your patent number
Market Size & Profit
Profit Attributable
to Patents
to Patents
Patent Score & Technology Lifecycle
Data-driven Analysis Process
The quickest and most cost-effective way to initiate a portfolio valuation project.
Proprietary valuation algorithms.
Available on demand.
Proprietary valuation algorithms.
Available on demand.
In 2014, we released a data driven patent valuation engine which provides the monetary value of a patent- and the only thing you need to do is enter a patent number. This made it very easy to calculate a company’s total value of patent assets, and it got us thinking, are patent asset values accurately reflected in stock prices?
So we created a new measure called PTR, short for Price Technology Ratio. This ratio identifies overvalued or undervalued companies based on patent asset value.
The concept of PTR is similar to P/B ratio, simply replacing book value with patent value. The magic of PTR is that it indicates whether a stock price is overvalued or undervalued by comparing patent value to market capitalization.
So we created a new measure called PTR, short for Price Technology Ratio. This ratio identifies overvalued or undervalued companies based on patent asset value.
The concept of PTR is similar to P/B ratio, simply replacing book value with patent value. The magic of PTR is that it indicates whether a stock price is overvalued or undervalued by comparing patent value to market capitalization.
THE STORY BEHIND PTR
FIND OUT MORE
CONTACT US
support@wisdomain.com
Established in 1999 in Seoul, with offices in Silicon Valley and Tokyo, Wisdomain’s core mission has been the analysis and valuation of global patents. Over 400 companies worldwide are using Wisdomain’s powerful patent search and analysis solutions.
WISDOMAIN specializes in Big Data analytics and helps to transform the data into actionable insights. Powered by its proprietary technology, WISDOMAIN developed unique data analysis tools for IP professionals to help track technology trends across the industry and automatically calculate the monetary value of patents in real time.
Taking the patent valuation technology to its next level, WISDOMAIN developed a new tool that provides insights into the future performance of security investments by identifying overvalued or undervalued technology companies.
WISDOMAIN specializes in Big Data analytics and helps to transform the data into actionable insights. Powered by its proprietary technology, WISDOMAIN developed unique data analysis tools for IP professionals to help track technology trends across the industry and automatically calculate the monetary value of patents in real time.
Taking the patent valuation technology to its next level, WISDOMAIN developed a new tool that provides insights into the future performance of security investments by identifying overvalued or undervalued technology companies.
ABOUT WISDOMAIN
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