Valuing GGP - or any company ....is not.......22 Dec 2020 23:31
.... a straight mathematical calculation. What factors do you use .There are a myriad of factors , nearly all with variable aspects to them. How do you arrive at all the "" right "" values ???
Totally impossible. A Market Cap is only a function of SP times the issued number of shares.
What matters is how the market perceives the SP.
Some of the assets are measureable , - some are not.
When are those assets going to produce cash flow, - or be sold off??
And then there is the shareholder sentiment / perception. Changing Market demand to buy and to sell, within frequently changing global economies.
Oh and also the constantly varying price of the product - in the ground - out of the ground ..........and of course there are several products in the ground , constantly varying in price.
The proximity of the processing facilities, the distances from civilisation, the number of months in the year that you can produce, the political stability of the country in which one is producing, all the other owned but untested assets the company owns, some of which may ??? be huge , some may be dusters.
AND - the quality of those managing the operation of the company.
So what formula does one use to calculate an SP. An educated finger stuck up in the Market wind ,
market sector experience and instinct , ...............and the best Bulletin Board in the business.
I do not think this SP is that far off. A bit on the low side. And good news on the way.
Tig