One of the fundamental precepts of this book is that all assets, financial as well as real, can be valued systematically using traditional valuation models. The bulk of this book examines the valuation of stocks, but the preceding chapter extended the reach of valuation models to cover real estate. This chapter considers other assets that are usually considered unique and different, and attempts to value them using the principles developed in the earlier chapters.
While the assets covered in this chapter have very different characteristics and attract different investors, they can be broadly classified into three categories:
Within each category, there are a surprising number of commonalties both across different assets and with the financial assets described in the earlier chapter.
A number of assets derive their value from their capacity to generate cash flows to their owners. The value ...