Sentences with phrase «intrinsic value of a book»

I've always considered the ability to pass a book on to someone I know would enjoy reading it, to be an intrinsic value of the book I bought and paid for.

Not exact matches

However, Buffett has noted that the metric has underrepresented Berkshire's intrinsic value because of the number of operating businesses Berkshire has acquired, which are held on the books at cost.

This focus on an asset's earnings power and, in particular, the ability of assets to earn returns in excess of desired returns is the essence of my intrinsic valuation, which is based on Steven Penman's residual income model.1 The basic idea is that if a company is not earning a return in excess of our desired return, that company, like the bank account example above, deserves no premium to book value.

Selling at a significant discount to our estimate of intrinsic value and at only a modest premium to tangible book value, we think News Corp offers a compelling risk / reward profile.

«Of course, it's per - share intrinsic value, not book value, that counts.

Along with Anthony Appiah and other current writers about the university, she acknowledges the intrinsic value of study (her most recent book on the topic is titled Not for Profit), while ultimately defending the value of liberal arts as essential for social and political progress.

So this question remains unanswered by the end of this book: how do we know that value neutrality is intrinsic to first order mental conceptualisation of sensation?

A central argument of this book is that intrinsic value is not limited to human beings.

The postmodern ecological worldview of this book finds intrinsic value in all those entities it calls individual entities, from protons to people.

Furthermore, even if book sales were to decline, it is our belief that the discounted value of the future stream of cash flows that BKS could expect to generate, otherwise known as its intrinsic value, would far exceed the current enterprise value of the Company.

If you think measuring the market value of a book is hard, measuring its intrinsic value is even harder, in part because there are a number of different perspectives.

Book value is a simplified way to assess a companies intrinsic value, its a snapshot of the companies asset value.

Let's understand this point in greater detail with an example: In stocks, while there are book value and the market value representing stock's intrinsic value and investor's perception respectively, in case of mutual funds NAV represents total assets held by mutual fund after taking care of all expenses.

First, they have done a fantastic job of compounding book value per common share, which is my favorite proxy for intrinsic value.

That's more than double the intrinsic value of the best insurance companies in the world (like Berkshire Hathaway, W.R. Berkley, or Markel), which I'd peg in the ballpark of two times book value.

Value investors seek stocks that are priced attractively relative to some measure of intrinsic worth - for instance, they look for stocks selling at temporarily low multiples of price relative to book value, cash flow, earnings, or sValue investors seek stocks that are priced attractively relative to some measure of intrinsic worth - for instance, they look for stocks selling at temporarily low multiples of price relative to book value, cash flow, earnings, or svalue, cash flow, earnings, or sales.

This is because book value can serve as a rough approximation of replacement value, which «can be a much better proxy for intrinsic value in many industries, and in many market cycles...»

You need to read up on the concept of replacement value (compared to net asset or book value, compared to franchise value, compared to intrinsic value).

Buffett's explanation draws a sharp distinction between intrinsic value and book value — «The investment shown by the discounted - flows - of - cash calculation to be the cheapest is the one that the investor should purchase — irrespective of whether the business... carries a high price or low in relation to its... book value.»

Now, determining intrinsic value is beyond the scope of this article, but includes analyzing multiples such as price - to - book, price - to - earnings, free cash flow, etc..

If you calculate the intrinsic value of a business as Rs. 100 (just counting the book value of its land, plant & machinery and the cash in the bank) and it is available to buy in the stock market for Rs. 90, it can be a worthy investment.

We believe the shares are worth well more than tangible book value right now; thus we've been purchasing shares at a good deal below 50 % of intrinsic value.

In somewhat similar vein, you can obviously equate earnings yield to RoME, but that would perhaps miss the point — with an analysis, how you get there is often just as important as the end - result... If you re-read that section of my post, the important point is to force myself (or readers) to stop focusing on book value, or intrinsic value, or even the potential upside — and to re-focus more specifically on what kind of return may be on offer, based on the current market cap & ignoring any revaluation potential.

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Furthermore, the shares were trading around book value of $ 7.59 and, given my investment hypothesis, I felt I needed a significant discount to intrinsic value if I wanted a margin of safety.

In fact, one of the points I'm making in the book is that the intrinsic value of the business can be improved when you find that they aren't performing the capital allocation function properly.

It's our job to increase intrinsic business value — for which we use book value as a significantly understated proxy — at a faster rate than the market gains of the S&P.

This is a book that starts with a simple premise: buy stocks at a fraction of the per share intrinsic value of the company, conservatively calculated.

Share prices of companies regularly exceed book value when investors believe that there is some intrinsic value that is worth much more than the company currently is.

Management would have to be pretty sure that the intrinsic value was significantly higher than book to make that kind of move.

In other cases, the intrinsic value of an education will far exceed its book value, a result that proves capital was wisely deployed.

In all cases, what is clear is that book value is meaningless as an indicator of intrinsic value.

By which I mean: As DCP's market cap gets much smaller again, any absolute variance in underlying intrinsic value vs. book value will be magnified in terms of NAV per share (& NAV enhancement, if additional sale proceeds are also applied to share buybacks).

Set up a valuation metric off of book or sales, since they don't move as much as earnings, and then offer to buy back shares at a multiple of the metric that you think represents intrinsic value.

You can gain some insight into the differences between book value and intrinsic value by looking at one form of investment, a college education.

Rather the inadequacies of book value have to do with the companies we control, whose values as stated on our books may be far different from their intrinsic values.

This focus on an asset's earnings power and, in particular, the ability of assets to earn returns in excess of desired returns is the essence of my intrinsic valuation, which is based on Steven Penman's residual income model.1 The basic idea is that if a company is not earning a return in excess of our desired return, that company, like the bank account example above, deserves no premium to book value.

Today, however, Berkshire's situation is reversed: Now, our book value far understates Berkshire's intrinsic value, a point true because many of the businesses we control are worth much more than their carrying value.

Buffett stated that Berkshire's intrinsic value is significantly higher than 110 % of book value.

This is where the importance of understanding the difference between market price, book value and intrinsic value comes in, and perhaps this is also when understanding accounting would be a plus, said Mr Miles, who later added that Mr Buffett would only buy investments below their book value and with a good «margin of safety».

Many times intangibles would be the cause of the greatest disparities between intrinsic values, market values, and book values.

This means higher returns for the investment portfolio over time, and it means above average book value compounding, which correlates over time with the intrinsic growth in value of the enterprise.

But accounting methodology makes it rare that the book value would be a good indication of intrinsic value.

If you give airline miles an intrinsic value of one cent per mile, we saved $ 661 per person booking with Avios, giving us a 8.3 cent - per - mile value on this trip.