Intrinsic Value
One, it is the price that you think a rational and well-informed buyer would be willing to pay for the entire company.
It is the amount of cash that you expect if the company liquidated itself and distributed the proceeds to shareholders.
Or it is the present value of the amount of cash that you expect the company to generate over time, doscounted back to the present. That’s it.
And those are all really just different ways of saying the same thing. An intrinsic value is not a point. It changes over time and it is typically a range of values. Our goal is to try to come up with a reasable value bon what rational people would be willing to pay. – Keith Trauner of Goodhaven
Readings
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Fairholme_Sears Case Study III August 2012 Asset Value CS
Viewpoints Of A Commodity Trader Excellent!
Goodhaven_2012_08_10_Welling Ditto!
DrRichardJohnsonAboutTheFatSwitch Health
John, think the heading has a spelling error… unless IntrinDic value is something new that I’m not familiar with
Thanks–when you rush, it takes twice as long. My bleary eyes did not connect to my brain.
No problems, happens to me all the time. Thanks for sharing all the good stuff, having a tough time keeping up
hey John, when are you coming up with accounting for value case studies u promised?
Dear Leon:
When I am cloned because of limited time. My Ex won’t allow my cloning so I am stuck. I hope to get to the case studies upon finishing the reorganization of the VALUE VAULT.
However, you can make your own case studies by going to the OFF Wall Street websit, downloading their free (dated) short reports and then looking at the financials of the companies mentioned. See if you can come up with the short thesis BEFORE you read their report.
There is plenty to do.