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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Keith J who wrote (25869)	1/30/2007 11:49:08 PM
From: Spekulatius	Respond to of 78663

regarding VLO - i agree my analysis was somewhat superficial. However, the goodwill is irrelevant with respect to VLO real value. My approach is simply to value VLO assets piece by piece, subtract the liabilities and compare it to the current market cap. So here we are 3.3M B/d refining capacity @13K/B: 43B$ Current assets 9.7B$ Other assets (LP etc.) 1.8B$ Total liabilities: 19B$ =Net asset value 35.5B$ /620M shares=57$/share We need to add 2$/.share for the last quarters earning to this, and we also need to note that we have not placed any value to VLO retail and distribution business at this point (those are hiding under property ,plant and equipment). Some of these liabilities included above are interest free (deferred taxes and other) and are worth much less than face value.