Re:What Is Value?
by skybrian on Friday August 13, 2021 @04:16AM
(#28166679)
The “goodwill” item on a balance sheet is based on how much the company paid for acquisitions above their book value. Since companies get bought for many reasons, it doesn’t mean anything specific about intangible property. It might mean that management overpaid for the acquisition and haven’t written it off yet.
The book value of a company isn’t supposed to match its intrinsic value. It only includes assets that have a clear price.
The book value of a company isn’t supposed to match its intrinsic value. It only includes assets that have a clear price.