The TDR Three Key Takeaways:
1. Acquisition Indicator: The Tangible Liquidation Value % Ratio serves as a straightforward tool to identify potentially undervalued companies. When the ratio exceeds 100%, it indicates that a companys tangible assets are worth more than its market price, marking it as a potential acquisition target due to the opportunity to buy assets at a discount.
2. Liquidation Benchmark: The Tangible Liquidation Value % ratio acts as a practical benchmark for investors, providing a conservative estimate of a companys worth based on tangible assets. Its especially useful in uncertain or declining markets, offering a clear view of the minimum value investors might recover if the company were liquidated.
3. Focused Valuati…
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