Mergers & Acquisition
What is the correct company value?
Value is not the same as price. Price is what the market is willing to pay. Even if the value is high, most want to pay as little as possible.
2009 © | S@R | 0 comments | Continued
The Probability of Gain and Loss
Every item written into a firm’s profit and loss account and its balance sheet is a stochastic variable with a probability distribution derived from probability distributions for each factor of production.
2009 © | S@R | 0 comments | Continued
Risk, price and value
Having arrived at the probability distribution for the value of equity (see full story) we are able to calculate expected gain, loss and their probability when investing in a company where the capitalized value (price) is known.
2008 © | S@R | 0 comments | Continued
