Business Value Method
Despite having solid long-term prospects, companies in an out-of-favor industry can sell for significantly less than what a knowledgeable private investor would pay for the entire business.
BY CONTRAST, WHEN EMPLOYING “THE BUSINESS VALUE METHOD,” WE CONSIDER A COMPANY’S
Capital Allocation Decisions
Long-Term Earnings Power
Prices for which similar companies have been acquired in the recent past
Click here to see the Boyar Value Group’s article detailing the “Business Value Method” that appeared in
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 Research 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.