So, froth has just not gone away at all. What happens is there is possibly froth in some of the companies. There could be good companies, there could be companies with froth and that is a challenge when investors are investing in midcap and small cap.
Understanding the high EV to MCAP Ratio
The EV to MCAP ratio assesses a company’s valuation by factoring in debt and cash reserves. A high ratio signals high leverage or strong cash