Stirling's approximation provides a way to estimate the logarithm of factorials, expressed as ln(n!) ≈ nln(n) - n. The approximation can be understood through integration, where the sum of logarithms is approximated by the integral of ln(x) from 1 to n. It's important to note that the relationship is an approximation, not an exact equality. The discussion emphasizes that while Stirling's approximation is useful, it does not provide a proof for the exact equality of ln(n!) and nln(n) - n. Understanding this distinction is crucial for correctly applying Stirling's approximation in mathematical contexts.