Stock Valuation

Profitable public case study commonwealth reit real

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: t charts will allow them to succeed. But this has not been as successful over long periods of time Different than fundamental analysis Venture Capital valuation is so different: they look at management first (more so than market, etc.), and ascribe highest value for the best management. Overcome this if you’re a Joe Nobody by getting credible people on your board, in turn gaining credibility yourself. 2) VC capitalists base you on your first round value private equity want to invest in companies with positive cash flow care that company is not deteriorating, stable income is good. Large public companies like P/E and discounted cash flows Microcap public company trade like VC firms, based on growth Trade on growth potential, management, and LIQUIDITY (can I get in or out of the stock if I want to) these trade for higher value. Case study: Dell Computers: wanted to take his company private but equityholders didn’t want it because they felt price was unfair Dell came up with 13.65 per share because he looked at DCF but also at comparable current stock prices. What’s the EBITDA? Profitable public Case Study: Commonwealth REIT: real estate: Announced 23 million shares to be released at 15- 16 dollars a share Two small investors wanted to pay more to take total control of company but company did not accept, Profitable equity- backed company Case Study: mPhase Trades on orange level (fully reporting and can get information on it) Trades at 0.3 of a cent with 4 billion shares outstanding Typical microcap public company Cannot be valued based on any of the previous stock mPhase is very liquid (about 10 million shares a day) microcap company Case Study: Cipherpoint: Cybersecurity with encryption software Startup company with a few customers Tried to raise capital without looking at venture capitalists and instead angel investors Not much revenue th...
View Full Document

This document was uploaded on 03/27/2014 for the course FINC 150 at Georgetown.

Ask a homework question - tutors are online