Extract from: http://csinvesting.org/wp-content/uploads/2012/04/buffett_and_nfm.pdf
Buffett’s purchase price values the business at $61 million. If Buffett bought 90% of the business for $55 million then the balance of 10% is priced at 5.5 million for a total of $60.5 million.
In 1983 earnings before taxes were $3.8 million and earnings after taxes were $1.5 million. Pre-tax paid by Buffett was 16 times.
Post-tax P/E paid by Buffett is 41 times.
Needless to say, NCK is trading at a SIGNIFICANT fraction of that valuation at ~7x post-tax earnings.
What Buffett pays for furniture businesses
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Last
$14.53 |
Change
-0.045(0.31%) |
Mkt cap ! $1.242B | |||
| Open | High | Low | Value | Volume |
| $14.64 | $14.93 | $14.36 | $5.332M | 364.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 331 | $15.97 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $13.08 | 923 | 1 |
View Market Depth
| Last trade - 15.59pm 03/05/2024 (20 minute delay) ? |
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Last
$14.54 |
Change
-0.045 ( 0.63 %) |
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| Open | High | Low | Volume | ||
| $14.64 | $14.90 | $14.36 | 56008 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| NCK (ASX) Chart |