Was having this discussion in a venture cap valuation class, and couldn't really fully discuss.
Why are intangible assets even placed on the balance sheet or more importantly, why do they matter in a DCF valuation? The value of intangibles I feel is already reflected in any substantial revenue growth/projections. Along similar lines, what exactly does amortization reflect? Depreciation reflects wear and tear and maintenance of the current quality of capital. Intangibles like brand name or recognition occurs as a result of investment in actual, material capital whose cost is captured by depreciation, so what exactly does amortization relate to?
