Lingyis on 28 June 2007
| FishyJoe said: The problem with only listing physical assets and liabilities is that it fails to account for things like management, intellectual property, human resources, etc. Is it even possible to assign a value to Mario or Pokemon? |
exactly. also, things like cash is included in it... so, the day microsoft issued $20 bln in dividends, it's net worth went down $20 bln that day. so it also don't make much sense.
when people talk of "value of a company" it usually refers to the market cap. i particularly like it because it's the value given to the company by the free market--i.e. everybody's guess of what the company is worth is included in there so you can't really argue that "it's undervalued" or "overvalued".
the Wii is an epidemic.
