Market Value Drivers of Public Corporations Genius, Liberty, Law, Markets, Governance, and Values
Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted.
—Attributed to Albert Einstein, from a sign posted at his desk at the Institute for Advanced Study, Princeton, New Jersey
LET’S RECAP. Chapter 1 summarized, with caveats, existing valuation techniques. Chapter 2 identified the main kinds of assets found on a balance sheet and urged analysts to consider values that lie beyond. Then, turning to earnings, Chapter 3 advised analysts to select operating earnings rather than total earnings, to eliminate windfalls. Chapter 4 focused on cash flow, with an emphasis on the importance ...