Sharing with you the latest on WallStreetMojo Blog by Dheeraj on Liquidation Value Calculation | Fitbit Case Study
Unlike human beings, a company is not a natural person. Its identity is different from that of its owners and managers. So, a death which seems to be inevitable for human beings is something which can be avoided from a company’s point of view. Many companies go on for hundreds of years. However, even a company can shut down at either on account of law (mostly on account of bankruptcy) or at the discretion of the management or the desire of the owners of the company.
Let us look at Fitbit’s share price movement over the past few quarters. We note that Fitbit stock plummeted by more than 90% in the past 1.5 years. Does this mean Fitbit is now trading at an all-time low and is a buying opportunity? One way to perform a valuation check is to compare Fitbit’s share price with its Liquidation Value.
Is Fitbit trading below its liquidation value?
In this article, we discuss Liquidation value in detail –
Liquidation Value Definition
Book Value vs Liquidation Value of an asset
Salvage Value vs Liquidation Value of an asset
Liquidation Value Calculation of a Company
FITBIT’s Liquidation Value Example
Tangible Book Value as a proxy to Liquidation Value
Noble Corp – Price to Tangible Book Value / Liquidation Value
Transocean – Price to Tangible Book Value / Liquidation Value
Fiat Chrysler Tangible Book Value / Liquidation Value
Read more – http://www.wallstreetmojo.com/liquidation-value/?utm_campaign=educba&utm_content=%5Bwallstreetmojo%5D+Liquidation+Value+Calculation+%7C+Fitbit+Case+Study&utm_medium=email&utm_source=educba&utm_term=