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

To: EddyRiquelme who wrote (48339)	6/17/2012 12:04:00 PM
From: Spekulatius	1 Recommendation Respond to of 78464

I thought intrinsic value wasAssets+dividend/share + Earning power ( agreed I need to discount future earnings too) + a value on definititive prospects as stated in security analysis? So therefore, I dont need to subtract liabilites from assets? So why do we subtract liabilities then yes. I think this is incorrect too -you can either do a valuation based on asset value, or you can do it based on earnings power but you cannot add up both, since you have to have assets (including current assets and some cash ) to run the business and generate earnings. Now if you have excess assets that you know are not needed to run the business, you can add this to the earnings valuation. NAV does not seem like an asset play, the negative tangible book value indicates this already.