7

A lower Price/Book Value means company is undervalued. It could also mean something horribly wrong. While it may look like a good deal, remember; Book Value is a point in time snapshot. It can very quickly loose value. Company may be loosing money faster and this can deplete the Assets very fast. In fact at times its so rapid that, virtually becomes scrap. ...


7

You should value the unit at: The fair market value of the whole property in 1983 (or whenever 25 years ago was) minus what the eldest sibling paid for the whole property minus the expected value in 1983 of free rent to the parents for the rest of their lives, Then convert from 1983 dollars to 2018 dollars.


3

Your math is correct, and gives you book value per share. So to get the total "book value" you need to multiply by the number of shares outstanding. Since FB has about 2.98B shares outstanding, that implies a total book value of about $81.5 billion. Which is fairly close to the published book value (assets - liabilities) in their latest quarterly balance ...


2

I was wondering how "future cash flows of the asset" are predicted? Are they also predicted using fundamental and/or technical analysis? There are a many ways to forecast the future cash flows of assets. For example, for companies: The most corporate people (and maybe the most fundamental) would take a deep look at the company and the economy (accounting, ...


2

Its not just Citi and BoFA, even Barclays, HSBC and other large Banks are trading below book value in markets they are listed. Are there particular assets that are causing these two banks to be valued lower relative to their book values than the other banks? There no particular assets. Given the current economic situation most Banks are not making good ...


2

The VDE fund is an energy fund so this is a function of recent price changes in oil (and gas, coal, &c). For example. Lets say last year when oil was $100 per barrel a bunch of companies saw a good return and put $ 100 million into a bunch of leases, boreholes, pumps, &c to return $10 million per year, and the market says yeah, they're all ...


2

Price to book value (market cap/Book value) is actually a metric of: PE x ROE which is equal to : (price/earnings) x (earnings / equity) where equity = net book value (asset-libailbities) therefore another way to write this is: (ROE – g) / (r – g) where g is the growth rate and r is the cost of equity/required rate of return. If we assume a zero ...


2

The cottage belongs to the owner of the main home. It was not left when they passed. The other assets are part of the estate and should be split via the will. If as you suggest, for some reason they all (i.e. the house owner esp) wishes to include it. I could make the claim that it has no value separate from the main home as it can't be partitioned. Will ...


1

The intrinsic value takes into account revenue-generating book value Consider an airliner. It has multiple airplanes. If those are generating revenue (and hopefully profit), when discounting the future cash earnings to today's value, you are already taking into account the value of the airplanes. If you were to take the value into account again, you would ...


1

In theory, yes. But in practice, no. Book value is calculated using historical costs of assets, and estimated depreciation. This may or may not match up with the value you'll actually get during liquidation. Notably, assets are often sold at a significant discount during liquidations. https://www.investopedia.com/terms/b/bvps.asp In theory, BVPS is the ...


1

If the cottage was built with permits, as you say, the property was re-assessed at the time it was built, presumably with a substantial increase in value attributable to the cottage. You can use that to decide what percentage of the total current valuation (use Zillow or Trulia for a rough estimate) is from the cottage. This won't work if the sale to the ...


1

I suggest that you use your own judgement on this. You can assign a reasonable percentage since it is impossible to monitor the hours using those assets. Example: 40 personal and 60 for business. It's really your call. I also suggest that you should be conservative on valuing the assets. Record the assets at it's lowest value. This is one of the most ...


1

Does the friend fix your electrical wiring and the engine of your car? If you need a professional advice - ask a professional. In this case - an accountant (not necessarily a CPA, but at least an experienced bookkeeper). Financial Statements (official documents, that is) must be signed by a public accountant (CPA in the US) or the principle (you). I wouldn't ...


1

So, their book value is $648,323,000 (correct?). Correct. If Netflix were to (hypothetically) go bankrupt immediately (considering that the numbers would be up to date and not from Dec. 31) and their assets sold & any liabilities paid, the shareholders would get only $11.711/share back. Not necessarily. You are conflating book value with liquidation ...


1

What you're looking for is the intrinsinc value of a business, which would be, strictly from a money point of view, if you buy the stock right now, how much cash would you expect back in the future? If you expect a company to run indefinitely, which we have no reason to expect Netflix won't given its current success, you can run a discounted cash flow (DCF) ...


1

A company's book value is the worth of all their assets. A companies book value is the value that accountants place on their assets, minus the accountants estimates of their liabilities. The thing is most assets don't have a single well-defined value. The cost of acquiring an asset can be much greater than the money that could be recovered by liquidating ...


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