Harvard Corporate Governance

JULY 9, 2024

The S&P 500 currently trades at a price to book value of 4.2, suggesting that book value accounts for less than 20% of the S&P 500’s market value. Human capital, for example, is an intangible asset omitted from balance sheets, and is commonly categorized under the S in ESG.

Intangible Assets 212

Intangible Assets Book Value Price to Book Marketability 212

IVSC

FEBRUARY 7, 2022

Searching for stocks with low price-to-book ratios was a good indication of a potential bargain. However, book values are no longer so informative as lots of intangibles are missing from the balance sheet, and some intangibles that are on the balance sheet, including many acquired intangibles and goodwill, are very hard to interpret.

Discounted Cash Flow 252

Discounted Cash Flow Intangible Assets Marketability Price to Book 252

Valutico

MAY 6, 2024

Market-based methods like Comparable Companies Analysis and Precedent Transactions Analysis offer relative measures of value based on market data. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value. Simplicity: Simpler to calculate with fewer assumptions about future performance.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Equilest

NOVEMBER 25, 2023

Dive into the nuances of industry-specific multiples, grasp the challenges of valuing intangible assets, and discover the evolving landscape of incorporating Environmental, Social, and Governance (ESG) factors into the valuation framework. One key emphasis is on the Price to Book Value multiple.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52