Using this table I started with $430 in assets.
I removed most of other assets 23, good will 62 and inventory 7
to get $338 then remove liabilities of $158 to get a Net Asset Value of $180
Then I divide by the number of shares 95 to get my NAV/sh or what I call Franchise Value/share.
For TXCC this equates to $1.90/share.
I don't think you should ignore the liabilities on the balance sheet
like you did in the linked post but that's just my opinion.
I also don't like to include other assets and inventory when I calculate
the Franchise Value. This is discretionary and is up to each observer how they want
to value the company's assets.
TranSwitch Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2002 2001
(unaudited)
-------- --------
Assets
Cash and short-term investments $240,439 $409,592
Accounts receivable, net 3,424 3,525
Inventories 7,436 8,227
Other current assets 5,953 5,959
-------- --------
Total current assets 257,252 427,303
-------- --------
Long-term investments 20,059 26,582
Property and equipment, net 17,993 18,946
Deferred income taxes, net 54,226 65,536
Goodwill and purchased intangible
assets, net 61,588 56,107
Other assets 19,416 24,237
-------- --------
Total assets $430,534 $618,711
============ ======== ========
Liabilities and stockholders' equity
Accounts payable, accrued
expenses and other current
liabilities $ 16,375 $ 22,297
Restructuring liabilities 2,129 2,999
-------- --------
Total current liabilities 18,504 25,296
-------- --------
Restructuring liabilities 25,888 26,925
Convertible notes 114,113 314,050
-------- --------
Total liabilities 158,505 366,271
-------- --------
Total stockholders' equity 272,029 252,440
-------- --------
Total liabilities and
stockholders' equity $430,534 $618,711
======================== ======== ======== |
