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What is “goodwill”?
Price / Earnings Ratios and Other Calculations
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The term goodwill is often referred to as the value of a company’s intangible assets. These intangible assets may include such items as brand equity, outstanding customer relations, good employee relations, patents, and any proprietary technology. The term can be found on a company’s balance sheet because it is not a physical asset such as product stock, buildings, or equipment.