ISEQ 20 Intangible Assets

Executive Summary

This study provides a market-based analysis of the relationship between market capitalisation, net tangible assets, and recognised intangible assets across the ISEQ 20, using publicly available financial information for 2023 and 2024. It highlights the scale of value not captured on balance sheets, particularly within non-financial companies, where market capitalisations continue to trade at more than three times net tangible assets.

The findings demonstrate a clear divergence between non-financials and financials. For non-financial companies, recognised and unrecognised intangible assets represent a substantial component of equity value, with goodwill accounting for the majority of recognised intangible value, reflecting a history of acquisition-led growth. In contrast, financial institutions continue to exhibit market capitalisations below net tangible assets, with recognised intangible assets dominated by internally generated software.

Overall, the study reinforces the increasing importance of intangible assets in understanding market value, while also highlighting the limitations of financial statements in capturing internally generated value. The analysis is intended to inform stakeholders on structural balance sheet trends rather than serve as a substitute for transaction-specific valuation analysis.