It takes into account
the replacement costs of assets that are depreciating in value.
* The Q ratio, calculated by dividing a company's market capitalization by
the replacement cost of its assets.
Greenwald, et al., have a monolithic approach to analysis using three tools to analyze all companies:
replacement cost of assets, earnings power, and franchise value.
Tobin's Q is the ratio of the market's value to
the replacement cost of the assets of companies in the stock market.
While clearly undervalued based on
the replacement cost of their assets, there didn't appear to be many value managers taking advantage of these opportunities.
Not exact matches
In a statement the company said the two acquisitions delivered the company significant expenditure savings, estimating that the
assets were acquired at approximately 8 per cent
of the
replacement cost.
It starts with total market capitalization and divides that number by the
replacement cost, or the amount
of money a company would have to spend to replace an
asset, added up across all companies and industries.
Flatt also chairs Brookfield's Investment Committee, whose investment approach is to acquire high - quality
assets at less than
replacement cost by looking for opportunities in regions and sectors during periods
of financial upheaval or operational challenge.
Replacement cost valuation asks: what is the value
of the
assets in the bag?
In conducting the study, the Surface Transportation Board shall consider whether to apply the revenue adequacy constrain using
replacement costs to value the
assets of rail facilities and equipment.
Buy more
of the
assets with low market to
replacement cost ratios.
Some
of these corporate
assets are listed at their market price, while others are valued at their
replacement cost.
Analysts, however, don't pay much attention to the absolute number, because the
replacement values are likely overstated (or, to put it another way, companies could replace their current
assets with
assets of comparable condition for less than the stated
replacement cost).
Ostensibly, the current value
of invested capital (i.e., the
replacement cost of company
assets) has been systematically overstated (and its depreciation understated).
Ultimately, we think that growing to a size
of around $ 300mn
of assets will enhance the likelihood
of an institutional take - out at a price much closer to
replacement cost.»
Or take the lesser - known «Tobin's q.» A calculation, named for the late economist James Tobin, that compares stock prices with the
replacement cost of company
assets.
Flatt also chairs Brookfield's Investment Committee, whose investment approach is to acquire high - quality
assets at less than
replacement cost by looking for opportunities in regions and sectors during periods
of financial upheaval or operational challenge.
This means that rather than changing everything in a building, we focus on
assets that need replacing or upgrading, and then choose the most energy - efficient
replacements that are also
cost - comparable over a reasonably short period
of time.
I tend to find myself involved in cases where either there has been a failure in a high - value
asset, resulting in a loss
of revenue and high repair or
replacement costs, or there have been high numbers
of failures
of lower value consumer devices, or a small number
of consumer device failures but the failure mode could cause serious injury or endanger life.
Because the purpose
of insurance is to restore the insured
asset (your home and property, in this case) to its original state, insurance companies use
replacement cost rather than market value to determine the actual dollar value
of coverage.
Replacement value is a property insurance term referring to the
cost of replacing an
asset in its pre-loss condition with an
asset of a like kind and quality.
The
replacement cost can change, depending on changes in market value
of the
asset and any other
costs required to prepare the
asset for use.
«This purchase was made below
replacement cost, will increase our portfolio
asset value to almost $ 700 million and reflects our continuing efforts to construct a portfolio
of premium New York City real estate.
«7100 Highlands Parkway is a perfect fit with Beacon's philosophy
of acquiring distinctive or iconic Class A office buildings with histories
of strong occupancies in major cities at prices well below today's
replacement costs,» said Paul Gaines, director
of asset management in Beacon's Atlanta office.
The Dilweg Companies believes that the current economic environment strongly favors the pursuit
of opportunistic and value - added
assets, which fit the following criteria: (i) growth metros in the Southeast, (ii) middle - market transactions valued between $ 15MM - $ 100MM, (iii) distressed
assets, or fatigued owners / lenders, and (iv) pricing significantly below
replacement cost.
Similar to The Wellington, this research - led acquisition demonstrates our disciplined capital allocation through the purchase
of value - add, urban - infill multifamily
assets with strong income growth potential at a significant discount to
replacement cost.
Investors see opportunity emerging from a combination
of factors, including the strength
of the U.S. dollar and the potential abroad to acquire
assets at below
replacement cost.
Generally speaking, when inflation occurs, the price
of real estate, particularly multi-tenant
assets that have a high ratio
of labor and
replacement costs, will also rise.