5 ms·
They are trading at a really small fraction of their book value, currently 0.37[1]. In addition, their book value is being weighed down by debt. I don't know
by vonmoltke 6y ago
They are trading at a really small fraction of their book value, currently 0.37[1]. In addition, their book value is being weighed down by debt.
I don't know why people fixate on market cap in cases like this.
[1] https://finance.yahoo.com/quote/LHA.DE/key-statistics?p=LHA.DE https://finance.yahoo.com/quote/LHA.DE/key-statistics?p=LHA....
- fuckyah 6y agoBecause huge debt might decrease future returns?
- ISL 6y agoBecause it, in ideal terms, is how much it costs to buy the company outright?
- SilasX 6y agoAre we sure that the "market cap:book value ratio" is not an artifact of a) the stock price being marked down by the market, while b) their (e.g.) planes have not been explicitly revalued in light of the lower demand? That's probably why the board doesn't shrug and vote to liquidate assets and pay shareholders more than their shares are worth.