RE:RE:RE:RE:Where's the value? First of all, shareholders equity is an aggregate total which includes both tangible and intangible assets on the balance sheet. You are trying to equate tangible book value with shareholders equity. That's your first mistake. Your second mistake, as I alluded on my original post, is that an equity raise increases shareholders equity. You failed to address this. Your third mistake is that goodwill is measured using historical costs and doesn't tell us anything about present value.
Goodwill does not depreciate but it can be impaired. If a company acquired another company in the past, say 1981, and recorded $16.9m in goodwill on the books, then today that number may still be $16.9m. In reality, those historical purchased assets may be worth a lot more to a competitor in todays prices. Heck, inflation alone could take $16.9m and bring it up to $58.48m from just a modest increase in inflation adjusted terms (3% per annum for 42 years). Btw, 1981 is an arbitrary date.
Anyway, the point is you have to dig a lot deeper if you're using tangible book value as your go to metric. What are the intangible assets worth? How much does it cost DCM to acquire a client and what is the lifetime value of that client? Is this value represented on the balance sheet accurately? What are the hidden assets on the balance sheet worth?