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

To: bruwin who wrote (3041)	5/20/2013 3:11:57 PM
From: E_K_S	Respond to of 4719

Re: Book Value and TBV I also know that on both Yahoo Finance and my Schwab Research link, the BV and TBV do change as they update their database. Over the years I find the BV to be the more conservative figure. Some have argued that Goodwill should be added in too as many times that type of "brand" has value. I disagree and really only want tangible book value at least as a start. Also, the GN calculation does not consider (1) pension liabilities and/or (2) litigation liabilities. Many times this is not important but in VOD's case I believe they quite a bit of un funded pension liabilities that I guess you would back out of the BV figure. So keep in mind these "other" two components when looking at straight BV and/or calculating the GN$. FWIW, as a first valuation test, the GN$ and/or EKS$ seems to work ok especially if the candidate stock is selling at a discount to the numbers. It's easy to calculate but important to also consider the quality of earnings. possible unfunded pension liabilities and if there is pending litigation resulting in large future write downs. EKS