The higher the yield the lower the price. I think OP was referring to Cap rate. Cap rate of 10% is pretty damn high (Means the property price is only 10x its cash flow income from rent). In any case, the question is what percentage below book value does a 10% cap rate imply? If the book values are at 8% cap rate, a move to 10% cap rate means the sale was done for ((10-8)/8)*100 or 25% below book value which is about right in terms of where we expect writedowns to be in the vicinity of.
- Forums
- ASX - By Stock
- vpg in fin today
The higher the yield the lower the price. I think OP was...
Featured News
AVH
Avita boosts skin restoration product portfolio with 'dermal matrix' – a kind of next-level gauze made of fake skin
MTL
Mantle Minerals' Nick Poll talks to HotCopper on finding gold grades up to 3.57g/t at Mt Berghaus
MND
Albemarle lithium downsize burns $200M hole in Monadelphous's pocket as latter's contracts terminated
Add VPG (ASX) to my watchlist
|
|||||
Last
$1.79 |
Change
0.000(0.00%) |
Mkt cap ! n/a |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
KAI
Pilbara Minerals buys land off Kairos part of its York gold project for $20M – and a 2% royalty on any PLS gold sales
MND
Albemarle lithium downsize burns $200M hole in Monadelphous's pocket as latter's contracts terminated
TG1
TechGen Metals kicks off airborne geophys survey at Sally Downs copper play – a first for the permit