The Business Value Method
We believe excessive pessimism about an industry or a company could result in extreme disparities between the public market value of a company and what a knowledgeable private investor would pay for the entire business. When employing the Business Value Method, Boyar Asset Management considers a company’s long-term earnings power, competitive advantages, present product mix, capital allocation decisions, financial strength, and the prices for which similar companies have been acquired in the recent past. Such analysis helps us attach the appropriate value to a company’s shares. If a company is selling at a significant discount to our perception of intrinsic or private market value, we consider it for purchase in client accounts.