What is the normalized earning power of the business?

When we buy a stock, we always think in terms of buying the whole enterprise because it enables us to think as businessmen rather than stock speculators. So let’s just take a company that has marvelous prospects, that is paying you nothing now where you buy it at a valuation of $500 billion…. To deliver, let’s assume that there’s only going to be a

Tamal Bandyopadhyay’s book on HDFC Bank

This leads to a value of $104 million in owner earnings in year 10. Let’s assume that the market pays an average multiple of 15× on owner earnings for this type of business and that no valuation rerating or derating of the business occurs in the interim period. This gives us a market value of $1.56 billion in year 10. Compared with the current

Do you ask what is the proper limit to wealth? It is, first, to have what is necessary, and, second, to have what is enough.

You Can Be a Stock Market Genius,

The right book at the right time will speak to you in a way that the right book at the wrong time just won’t.

Edward Chancellor’s book Capital Returns helped

This leads us to the discussion regarding the appropriate starting point for the cost-of-capital number.