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COMPANY VALUATION OR MARKET VALUE has two parts—tangible value, like cash flow and earnings, and intangible value, based on the market’s perception of whether a company is likely to keep its promises about future growth. About half of valuation is tangible; the other half is intangible. However, intangible value continues to grow as a percent of total market valuation. If investors perceive that a certain company has built a distinctive value proposition that includes low prices and a culture that resonates with customers, they reward it by rating the intangible value very high.