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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?


To: sunny who wrote (9336)11/16/1997 5:57:00 PM
From: David Lawrence  Read Replies (2) | Respond to of 22053
 
>>Would you mind explaining the term "private value"?

Sunny,

The Private Market Value is generally the aggregate value of the company if it is broken into individual operations, each having its own stock price. Value investors often for companies with a high PMV relative to its current market capitalization, looking for either a bargain or a potential takeover target (the former in the case of 3Com).

This is not the same as the company's liquidation value, since liquidation gives no consideration for goodwill (additional consideration for the value of the ongoing concern).

PMV is sometimes called Breakup Value or Takeover Value.