Sentences with phrase «intrinsic value of the business also»

For example if a company had a ROE 20 % and can reinvest 100 % of their earnings, and earnings will grow at 20 % over time, then will intrinsic value of the business also approximate this 20 % annual growth rate?

Not exact matches

If you buy a quality business at a big discount to intrinsic value, you get the potential of a double dip — the gap to intrinsic value hopefully closes and then you can also benefit from the company compounding per - share value over a number of years.

Pretty simple... if the business has an ROIC of 20 % and can reinvest 100 % of their earnings, then earnings will grow at 20 % over time, and the growth of the intrinsic value of the business will also approximate this 20 % annual growth rate.

Warren Buffett understood, through rational analysis what the going - concern liquidation value of the business was and was also able to rationally analyze an intrinsic value for the business, assuming it would continue as a whole entity.

It is also acceptable that the intrinsic value of some businesses can't be reliably determined since they can be put in a «too hard» pile to free up time for other things.

Admitting that the intrinsic value of some businesses can't be reliably determined is also very hard for some people to accept.

[This also acknowledges the underlying intrinsic value of the business — if AERL threatens to become a perennial loss - maker, shareholders and / or acquirers can look to the ever - increasing value of its two dozen odd landing slots at Heathrow.