RE: Asking for a friend23 Feb 2024 09:28
Crazyfox, I hear what you're saying, but that's where the magic happens...
Traditionally, share prices are based on estimated future returns (20:1 ball park), not the asset worth of a business. That's why..
A. When someone offers to buy a company we (usually) see the share price rocket. It's the moment we see the true worth of a business realised.
B. This is why nearly all AIM & small caps (no divi) see their share price arbitrarily valued very loosely on the underlying assets, but mostly on demand for it's shares (and at the whim of the brokers).
In EUA's case, there is NO WAY to accurately value it's assets or what a potential buyer is willing to pay, especially given the massive risk currently associated with them.
Ergo, and potential buyer of the business would need to put a value on the assets, not just the mcap.
Hope this was sensible enough for you, but I suspect you already knew this?