If you are unfamiliar with the concept of Book Value, check out our definition page on Book Value and
Shareholder Equity here:
Not exact matches
Here's a summary of the banks» ROE, which I've calculated as net income divided by total
shareholders»
equity:
In other words don't count on that cash being returned to
shareholders or even invested in passive investments (private or public
equity) for the benefit of
shareholders; A liquidation valuation really isn't of interest
here as Glassbridge is set to be an ongoing business and I can see an operating cash bleed for 3 - 5 years depending on how long it takes the company to attract enough AUM to cover operating (read staffing) costs.
Here are the relevant adjustments and pro forma «
Shareholders equity», which equates to our Net Asset Value as of March 31, 2010.
Nothing to dislike
here, however, with total liabilities of $ 4.7 billion against $ 3.8 billion in total
shareholders»
equity.
Convertibles & other types of preference capital are somewhat similar (and some companies include them in leverage ratios)-- arguably they're
equity / non-callable liabilities, but they also increase risk / leverage for ordinary
shareholders, so the same haircut's acceptable
here too.
However, as per the press release & subsequent interims,
shareholders end up with just EUR 1.5 - 1.6 million of cash /
equity — at this point, I still don't fully understand the numbers / situation
here.
Because management's compounding value
here: Tetragon's return on
equity was 9 % last year & it's averaged 12.4 % pa since its 2007 IPO, it has a progressive dividend policy, it's launched serial tender offers, and overall it's returned a cumulative $ 1.2 billion (in dividends & share repurchases) to
shareholders (since the IPO).