Viridian Capital Advisors的动态

One of the reasons Viridian Capital Advisors has long favored the total liabilities to market cap leverage ratio is that this ratio, along with option valuation techniques can be used to derive an estimate of the company's market value asset coverage of its liabilities. Using the notion that a company's equity can be thought of as a call option on the value of the assets with a strike price of its liabilities, we can iterate option valuations to discover what asset value coverage the company's total liabilities to market cap implies. Just becasue the company's equity doesnt trade at zero doesnt mean the liabilities are covered by asset values. Haven't you had the feeling that if the music stopped suddenly, quite a few companies would be left with worthless equity? Well, you were right!! The chart below shows the asset value coverage of liabilities of 30 MSOs. Note that when total liabilities to market cap goes above about 5x, it is a good indication that your equity may be underwater. See more detailed discussion at dealtracker.viridianca.com.

  • chart, histogram

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