Quick question, page-2

Book value = function(discounted cash flows). Initial values are at cost and then assessed up/down by the directors every reporting date using independent valuations.

There are two scenarios to play with
1. Valuation as a going concern
2. Valuation under liquidation/buyout

If you think scenario 1, then you make your valuation based on how impaired you think future cashflows are going to be using current book value as a reference point.

If you think scenario 2, you can't exactly use the book value because someone else is going to have a different income yield and a lot of ppe will be written off.

It's not "clearly undervalued" - there is always the risk that books have been cooked for a while and smart money is out - but unlikely and at these prices worth a punt imo. Income is going to take a hit (how much is up to you to figure out), but unlikely to drop to the point of liquidation given how many people are still going to Westfield.