Re:Zynga stock plummets below value of its cash and real estate
by patrickgzill on Wednesday October 10, 2012 @06:39PM
(#4638543)
You would be paying less than book value (value of copmany divided by number of shares), true.
However, if they lose money, then the book value will drop some more. Only if the company failed utterly and then returned the money to the shareholders (not likely) would it be "safe" to focus on book value.
However, if they lose money, then the book value will drop some more. Only if the company failed utterly and then returned the money to the shareholders (not likely) would it be "safe" to focus on book value.