4 ms·
You are right. It's just that in my book, value = what I get, not what I pay. Since this metric include the market cap, a Chinese OTC shell company can have a
by TheAlchemist 3y ago
You are right.
It's just that in my book, value = what I get, not what I pay.
Since this metric include the market cap, a Chinese OTC shell company can have an 'enterprise value' of several hundreds millions, even though everybody knows it's worth nothing.
Maybe it's just me though - I like value investing.
- madsbuch 3y agoIndeed, this happens often. Like buying a house under the financial crisis and taking out a loan on unreasonable valuations. This is btw. exactly what the article talks about. You should use the most favorable way to finance your company: Stocks when the market thinks you are worth more than you think and bonds when you think you are worth more than the market thinks.