It’s simply the intangible assets like know-how, employees, hard to value assets like software and similar products etc and importantly future growth expectatio

It’s simply the intangible assets like know-how, employees, hard to value assets like software and similar products etc and importantly future growth expectations. You wouldn’t value a software company based on how much the chairs and desk it’s employees sit at cost? It basically the premium a purchaser is willing to pay above the real/book value of a company.