# S&P Dow Jones Indices Revises U.S. Growth and Value Rules Dec. 21

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/40132
Published: 2026-10-24T16:28:05.000Z
Updated: 2026-10-24T16:28:05.000Z
Section: Investing

> Growth scoring will drop 12-month share-price momentum. Value scoring will replace book value-to-price with an intangibles-adjusted measure and add earnings-to-price and sector-limited free cash flow-to-price factors.

S&P Dow Jones Indices will revise its U.S. style-index methodology Dec. 21, changing how benchmarks classify growth and value stocks across several major U.S. equity index families.

The growth framework will remove 12-month share-price momentum from its scoring factors. It will keep the three-year sales per share growth rate, leaving that measure in place as the methodology changes how growth classifications are determined.

For value scoring, the revised rules replace book value-to-price with intangibles-adjusted book value-to-price and use a simple average of trailing and forward one-year earnings-to-price measures. They also add free cash flow-to-price. Sales-to-price remains a value factor, so the update changes some of the inputs while retaining that existing measure.

The free cash flow-to-price factor will not apply to every sector. It is excluded for Real Estate, Banks, Insurance, Mortgage REITs, Specialized Finance, Asset Management & Custody Banks, and Investment Banking & Brokerage.

The changes cover growth, value and pure-style indexes linked to the S&P 500, S&P MidCap 400, S&P SmallCap 600, S&P Composite 1500, S&P 1000 and S&P 900 index families. They also extend to associated sub-indexes, custom indexes and other derived indexes that use the S&P U.S. Style Indices as an underlying index.

Clients will first see the revised classifications in pro-forma files beginning Dec. 4. The methodology changes take effect before the market opens Dec. 21.