Small-cap equities, after strong 2023-24 gains, slipped into a bear market but now show recovery potential. Supportive macro fundamentals, easing fiscal and monetary policies, sectoral diversification, and valuation comfort improve prospects. Investors may consider diversified small-cap strategies within portfolios.
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