diff --git a/modules/purchase_trade/pricing.py b/modules/purchase_trade/pricing.py
index b4031ea..6191627 100755
--- a/modules/purchase_trade/pricing.py
+++ b/modules/purchase_trade/pricing.py
@@ -113,11 +113,11 @@ class MtmStrategy(ModelSQL, ModelView):
                     )
                 )
 
-            elif comp.price_source_type == 'matrix' and comp.price_matrix:
-                value = self._get_matrix_price(comp, line, dt)
-
-            if comp.ratio:
-                value *= Decimal(comp.ratio)
+            elif comp.price_source_type == 'matrix' and comp.price_matrix:
+                value = self._get_matrix_price(comp, line, dt)
+
+            if comp.ratio:
+                value *= Decimal(comp.ratio) / Decimal(100)
 
             total += value * qty
 
diff --git a/modules/purchase_trade/tests/test_module.py b/modules/purchase_trade/tests/test_module.py
index 2f49993..7d2b4c5 100644
--- a/modules/purchase_trade/tests/test_module.py
+++ b/modules/purchase_trade/tests/test_module.py
@@ -48,5 +48,27 @@ class PurchaseTradeTestCase(ModuleTestCase):
             self.assertEqual(
                 Valuation.get_totals(), (Decimal('42.50'), Decimal(0)))
 
+    @with_transaction()
+    def test_get_mtm_applies_component_ratio_as_percentage(self):
+        'get_mtm treats component ratio as a percentage'
+        Strategy = Pool().get('mtm.strategy')
+        strategy = Strategy()
+        strategy.scenario = Mock(
+            valuation_date='2026-03-29',
+            use_last_price=True,
+        )
+        strategy.currency = Mock()
+        strategy.components = [Mock(
+            price_source_type='curve',
+            price_index=Mock(get_price=Mock(return_value=Decimal('100'))),
+            price_matrix=None,
+            ratio=Decimal('25'),
+        )]
+        line = Mock(unit=Mock())
+
+        self.assertEqual(
+            strategy.get_mtm(line, Decimal('10')),
+            Decimal('250.00'))
+
 
 del ModuleTestCase