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Samsung Electronics Co as valued by the Net Current Asset Valuation Technique


Current Price
$973
Mkt Cap: £ 213,315m
Implied Valuation*


NCAV valuation popularised by Benjamin Graham aims to give a margin of safety versus the likely liquidation proceeds.


* Assumptions

The company's Current Assets are KRW177,388,524m.
Current Assets

In calculating NCAV, as defined by Benjamin Graham, one just uses current assets. Long-term assets values are not counted, meaning that it is essentially paying nothing for all the fixed assets (buildings, machinery, etc.), or any goodwill items that may exist.

Samsung Electronics Co Backup
Cash and Short Term Investments, TTMKRW96,735,339m
Total Receivables, NetKRW40,212,831m
Total InventoryKRW31,455,994m
Other Current AssetsKRW2,987,497m
The company's Total Liabilities are KRW99,568,074m.
Total Liabilities

The NCAV calculation deducts all "prior claims", i.e the firm's current and long-term liabilities. This means that, in many cases, NCAV will be negative.

Samsung Electronics Co Backup
Total Current LiabilitiesKRW67,354,091m
Minority InterestsKRW7,715,342m
Deferred TaxKRW15,404,584m
Total Long Term DebtKRW2,834,724m
Total Other LiabilitiesKRW6,259,333m
The Shares Outstanding are 271,706,770 .


Description

Net Current Asset Value (NCAV) was a conservative measure of value employed by Benjamin Graham to give a significant margin of safety. It is calculated as the current assets minus all the firm's (current and long-term) liabilities. Long-term assets (e.g. intangible assets and fixed assets) are not counted.

As a liquidation value measures, it estimates the amount of money that a company might be sold for, if it were to go out of business. If the implied value exceeds the market capitalisation, there could be an arbitrage opportunity to sell off the company's assets but this depends on whether the business is stable enough such that operating losses don't quickly erode the existing assets.



* Disclaimer: These valuation tools are provided solely for informational & educational purposes so that users can easily run their own valuations. The pre-defined values are simply a starting point based on global assumptions that we have applied across the entire market – users should amend them as they see fit and not regard them as a substitute for their own judgment. Any resulting valuation outputs are necessarily generic and are not endorsed for a given stock by Stockopedia.

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