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.
Book value = function(discounted cash flows). Initial values are...
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$3.12 |
Change
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Mkt cap ! $16.20B | |||
| Open | High | Low | Value | Volume |
| $3.16 | $3.18 | $3.12 | $45.51M | 14.53M |
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| No. | Vol. | Price($) |
|---|---|---|
| 3 | 258901 | $3.12 |
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| Price($) | Vol. | No. |
|---|---|---|
| $3.13 | 18090 | 4 |
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