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I believe the ratio tries to take into account all assets, tangible and intangible, but I have no idea how for example Facebooks user base/network effect would

I believe the ratio tries to take into account all assets, tangible and intangible, but I have no idea how for example Facebooks user base/network effect would be recognized in GAAP accounting. Does anyone know?

foobarqux 11y ago
It's not.
jacobr1 11y ago
goodwill?
- foobarqux 11y ago
  They didn't acquire the users through M&A.