Poll Results: Minimum Market Capitalization for Backtests
The poll results are in for the minimum market capitalization requirement for backtest on Fat Pitch Financials. In that poll I asked, “What minimum market capitalization do you prefer for backtests on Fat Pitch Financials?” The options respondents could choose were:
- $50 million (old minimum)
- $1 billion (new minimum to match S&P 500)
- Other
The most popular response was $50 million, with 52 percent of the responses. Here’s a full breakdown of the poll results:

If you add in the one vote for $10 million minimum, the $50 million category actually was about 57 percent. The proposed new $1 billion minimum got 33 percent of the vote.
Given these results, I’m going to revert back to using $50 million minimum market capitalization for backtests and I’m going to explore using a smarter liquidity test that requires a minimum dollar traded value over the past month versus a minimum average trading volume.
great to hear as small caps are where most of the alpha is imo
Hey George awesome to hear! Are you going to go back and do another ev/fcf test with the small caps?
Yes, I plan on running another ev/fcf with the $50 million market cap minimum. I just need to finish up my tax filings.