Intangibles are assets that cannot be physically measured or touched. Examples are Brand Name, Copyrights, Franchises, Patents, Trademarks, etc. Companies that have a Durable Competitive Advantage usually have a Brand Name whose value is not recorded in the balance sheet.
Brand Name equal customer trust, therefore, they are worth billions of dollars and may be added to your calculations. In addition, people are more likely to purchase stock of companies with a very familiar Brand Name. This creates demand to propel the stock price higher. The stock of a company with a Brand Name that is known all over the world will most likely go up.
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Give the company's brand name an estimated worth and add it to Intangibles.
