Financial Profiles Launches ValueView360℠ to Help Small- and Mid-Cap Companies Address Valuation Gaps
LOS ANGELES, Sept. 23, 2026 (GLOBE NEWSWIRE) -- Financial Profiles, a strategic communications firm that helps companies create value through effective communication, today announced the launch of ValueView360SM, a proprietary solution that helps small- and mid-cap (SMID) companies ($500 million to $5 billion in market cap) assess and address valuation gaps.
“Changing market dynamics are creating persistent valuation challenges for many small- and mid-cap companies. As capital and investor attention become more concentrated in large-cap equities, high-growth sectors and alternative investments, SMID companies must work harder and smarter to attract the investor and analyst support needed to maximize valuation,” said Moira Conlon, CEO of Financial Profiles.
“The consequences of a persistent valuation gap can be significant, including reduced access to capital to fund growth, less flexibility to pursue strategic acquisitions and greater vulnerability to activist campaigns. We launched ValueView360 to give board directors, CEOs, CFOs and IROs a disciplined way to identify the key factors driving a valuation gap and a clear roadmap to enhance valuation.”
The ValueView360SM Solution
ValueView360SM provides a comprehensive assessment of the key financial, market and communications factors contributing to a company’s valuation gap and delivers tailored recommendations to help companies prioritize the actions most likely to narrow the gap and enhance valuation. Clients receive a comprehensive presentation and consultation with Financial Profiles to review the valuation gap assessment, including key drivers, supporting analysis and recommendations. Companies can implement the recommendations independently or engage Financial Profiles for support.
The New Reality for SMID Companies
Competition for capital is intensifying as the broad market allocates investor capital to large-cap equities, high-growth sectors and alternative assets.
- Large- and Mega-Cap Dominance: Passive investing and structural fund flows continue to favor large- and mega-cap companies, concentrating investor attention and capital in the largest public equities.
- Growth Sector Focus: High-growth sectors such as AI and space technology continue to command a disproportionate share of investor attention and capital allocation.
- Rise of Alternatives: Alternative investments are attracting a growing share of capital as they become more accessible and increasingly central to portfolio construction.
Against this backdrop, SMID companies are competing for a smaller share of investor attention and remain underfollowed by Wall Street analysts. Even strong companies can experience persistent valuation gaps.
Undervalued SMID Companies Are Vulnerable to Activist Campaigns
The S&P SmallCap 600 Index underperformed the S&P 500 by almost 27% on a cumulative basis from the end of 2022 through mid-September 2026. This underperformance has made undervalued SMID companies more vulnerable to activist campaigns, as activists continue to seek opportunities to unlock value in smaller companies. Proactively addressing a valuation gap is far more effective and less costly than responding to an activist campaign and can strengthen credibility with investors.
SMID Companies Face Constrained Resources
Although overall investor relations budgets have increased in recent years, smaller companies continue to operate with fewer resources than their large-cap peers, even as IR teams’ responsibilities have expanded. For SMID companies, addressing a valuation gap requires a deliberate, research-driven approach and cross-functional expertise, often requiring support beyond what lean internal teams can provide.
“Understanding the many factors that influence valuation is complex,” Conlon said. “It takes a dedicated effort, multi-disciplinary expertise, deep IR knowledge and experience to determine the key drivers of a valuation disconnect and develop a thoughtful, strategic plan to address it. With ValueView360 SM, Financial Profiles brings a proven process and experienced team to help companies address valuation gaps and realize their full potential.”
About Financial Profiles
Financial Profiles is a strategic communications firm with a 20-year track record of helping companies create value through effective communication. Public and private companies rely on Financial Profiles for expertise in investor relations, public relations, transactions and crisis communications. We leverage best-in-class communications to help clients enhance their profiles and attract capital, talent, customers and media attention. We are a certified women-owned business. Visit finprofiles.com.
For more information about ValueView360SM or to schedule a conversation with us, please visit finprofiles.com or contact us:
Tricia Ross
tross@finprofiles.com
310-622-8226
Julie Kegley
jkegley@finprofiles.com
310-622-8246
Sources
U.S. public company universe: At the height of the public markets, the U.S. had roughly 8,000 publicly listed companies; today, World Bank / World Federation of Exchanges data show fewer than 4,000 U.S. listed companies.
Source: Listed domestic companies, total - United States | Data
Private market context: The growth of private equity and private credit has made it easier for companies to stay private longer and access capital outside the public markets, contributing to a smaller listed-company universe.
Source: Blackrock private-credit-opportunity.pdf
ETF proliferation: Investment Company Institute data show 4,495 U.S.-domiciled ETFs at year-end 2025, while Morningstar data, as reported by Investment News, showed that ETFs outnumbered U.S. listed stocks in 2025, with roughly 4,300 ETFs compared with about 4,200 listed stocks.
Source: The US ETF Market: FAQs | Investment Company Institute
Source: ETFs have surpassed US stocks; how can advisors pivot? | InvestmentNews
Small-cap underperformance: S&P SmallCap 600 underperformed the S&P 500 Index from 12/31/22 – 9/21/26 on a cumulative basis by 26.64% or -26.64%.
Source: FactSet
SMID valuation gap: There has been a persistent decline in SMID-cap stocks’ percentage of the S&P 1500 Market Cap since the mid-2000s.
Source: Landmark Wealth Management – Small & Mid Cap Stocks: A 30-Year Perspective
IR and valuation: IHS Markit found that highly effective IR can maximize valuation by supporting a 15% premium and lowering volatility by 5%, as measured by beta; ineffective IR can lead to a valuation discount of 10% or more.
Source: IRCompetitiveAdvantageEBook.pdf
Activism vulnerability: Barclays reported that companies with market capitalizations under $5 billion represented 68% of activist targets in the first half of 2025, a five-year high.
Source: Barclays
Analyst coverage gap: 43% of Russell 2500 constituents are covered by five or fewer analysts, compared with roughly 26 analyst ratings per company across the S&P 500.
Sources: Federated Hermes, as of August 31, 2025; FactSet Earnings Insight, June 18, 2026; Hood River Capital Management, June 2026
The least-covered small caps have underperformed the most-covered small caps.
Source: BofA Global Research, “The Big Guide to Small Stocks: 5th Annual SMID Cap Primer,” May 28, 2026
IR resources: IR Impact’s Small & Mid-cap IR report cites average SMID IR budgets of approximately $210,000 and average SMID IR teams of 1.7 staff members, compared with larger-company budgets and teams.
Source: IR Impact Research Report
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