I think they are referring to the "net present value of future cash flows" model for valuing stocks. Its one model that can be used to help determine the value of a company - the idea being that you aren't necessarily buying a company's stock for its earnings today, you are buying it for what it will earn over the time period you intend to hold it.
Of course, that's not the only thing that determines stock price.
No worries, if you have a question on something just ask. Greenspan popularized the view that excess capital flowing into stocks can be viewed as a form of inflation. There are limits (not strict) on short-term consumption so excess capital needs to go somewhere. Some of it goes into stocks until used for future consumption.
You are misrepresenting whatever it is you think he has said.
Greenspan has never said that "excess capital flowing into stocks can be viewed as a form of inflation".
Higher price of stock being a potential indicator of inflation (due to the wealth effect, etc) is very different to it "being a form of inflation".
Anyway, I don't care to continue this discussion as is. Please feel free to post references backing your redefinition of economic terms if you wish to proceed.
By all means use it as whatever indicator you like, but lets stick to the facts.