Category Archives: Investment Strategies

OTM Intrinsic Value Formula

At the meeting yesterday the question was raised about the specific calculation used to determine Intrinsic Value.  There are a number of different approaches — the code for the one presently used (I am happy to refine or improve it) is noted below.  It takes the next 10 years of discounted earnings and adds it to a discounted terminal value based on Enterprise to EBITDA ratio. read more