What you say is true if you are buying the company. But we punters are just buying a portion of an ongoing business. Same as with EBITDA - useful if you are to take over the company, but not much use to a small shareholder - the ITD&A continue to impact the P&L. (Charlie Monger was once asked a question about EBITDA and he said, "do you mean b...s... profit". I think the same applies to an enterprise valuation.
Anyway, I much prefer LGP's ratio for NTA to Market Cap, which at a SP of 13.5c is about 1.7 times. Very healthy.
LGP Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
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