In the Charlie Rose interview Ross discusses his analysis of LTV, which is basically a classic Graham net
current asset value analysis:
Not exact matches
He did, however, heavily discount those
assets (from Chapter XLIII of Security
Analysis: The Classic 1934 Edition «Significance of the
Current Asset Value»):
In «Security
Analysis» Graham describes how
current assets available for shareholders, i.e.
current assets - total liabilities, can be used as an approximation for liquidation
value.
It seems that any further
analysis beyond determining the net current asset value was unnecessary for him (although he does discuss in Security Analysis other considerations for the discerning security a
analysis beyond determining the net
current asset value was unnecessary for him (although he does discuss in Security
Analysis other considerations for the discerning security a
Analysis other considerations for the discerning security analyst).
This
analysis does not even take into account the
value of Aviat's long - term
assets of $ 61 million, or $ 1.02 per share, which, when added to net
current assets of $ 3.35 per share, equates to tangible book
value of $ 4.37 per share.
Here's Graham's suggested discounts (extracted from Chapter XLIII of Security
Analysis: The Classic 1934 Edition «Significance of the
Current Asset Value»):
The first approach Graham detailed in the original 1934 edition of Security
Analysis (my favorite edition)-- «net
current asset value»:
In Security
Analysis, Graham wrote that, in determining the liquidation
value, the
current -
asset value generally provides a rough indication:
One of Benjamin Graham's
analyses is the Net
Current Asset Value approach to uncovering bargain stocks, which finds the minimum value a company would fetch if it were liquid
Value approach to uncovering bargain stocks, which finds the minimum
value a company would fetch if it were liquid
value a company would fetch if it were liquidated.
3.1 We will undertake a comprehensive review your
current financial situation, including an
analysis of your income (all the money that comes into your household), your essential and priority expenditure (things like rent or mortgage, gas, electricity, food, transport to work and any repayments towards loans that secured against an
asset such as your home), unsecured debts (such as credit cards, overdrafts and personal loans) and
assets (things you own that have a saleable
value, such as property and cars).