Comment You are missing the same point still (Score 1) 335
Originally said:
Stock valuations are based not only on actual assets, but future growth and earnings potential.
You replied:
They're comparing the stock valuation to what the company would sell for if purchased. When you sell a company, you're also selling the "good will" and other value inertia things like brand familiarity
Goodwill is ALSO something that can increase in the future, just like monetary assets - you buy stock with the idea that the entire company value (including goodwill) will grow. So the original point is still a sound one.