Companies with a market cap (stock price plus number of outstanding shares) as low as $78 million are now on the list. In 2008, the minimum market cap was $167 million, Ernst & Young says. That is the lowest valuation since 1993.

The average market cap dropped 38% to $432 million, and the median market cap declined 41% to $515 million in 2008, according to Ernst & Young’s analysis.


“The lower threshold is truly a sign of the damage inflicted on companies and the overall market through the end of May of 2009,” said Maria Pinelli, Americas director of Strategic Growth Markets for Ernst & Young. “It also has created an opportunity for smaller companies to gain enormously valuable exposure before a new, larger investor base. The key now will be to impress investors by delivering sustainable growth, outperforming their peers and creating a growth trajectory that is aligned with or exceeds the overall market trajectory.”