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Strategies & Market Trends : Value Investing

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To: Sean Collett who wrote (78394)10/29/2025 7:27:25 AM
From: bruwin   of 78414
 
OT.

"From my view the cash flows of the enterprise are more important than the book value."

From my view it is how much is left of the Top Line (Total Revenue) of the company at its Bottom Line, i.e. Net Income.

It is that amount which not only contributes to the Dividend payout, at the discretion of the Directors, but also reduces Total Liabilities relative to Total Assets when a positive Net Income amount is added to the Retained Income on the company's Balance Sheet. The converse is true if a company shows a Loss at its Bottom Line.

And regarding "Book Value" .... its relevance and determination only really "kicks in" when the company is Liquidated. Only then will one know if that "Book Value"/Share was what it was assumed to be because the "Sale" of that company's Assets may not possibly be realized.
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