A firm’s stock price should reflect the value of both its tangible and intangible capital. While tangible capital has been widely studied, intangible capital has been receiving more attention due to its increasing importance in economic values. According to a December 29, 2020, Forbes article, “In 1975, less than 20% of the S&P 500’s market [...]
The Impact of Goodwill on Stock Returns was originally published at Alpha Architect. Please read the Alpha Architect disclosures at your convenience.