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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Night Trader who wrote (73586)5/19/2010 4:02:35 PM
From: Jacob Snyder  Read Replies (1) of 74559
 
re: Valuing Wall Street: Protecting Wealth in Turbulent Markets

Publisher: McGraw-Hill Companies; 1st edition (March 24, 2000)

Good timing.

Q represents the value of equities divided by the cost of replacing the underlying capital stock. Undervalued = Q less than 1. Sounds simple.

But....what about intellectual property, copyrights and patents, which are the basis of profitability for drug companies and many tech companies? How would you count the drug candidates in early stage trials, which represent the (potential) future income stream of a drug company?
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