No. of Recommendations: 7
Like most folks here, I try to read as many IV estimates as I can, and follow the methodology and assumptions in each. Depending on the valuation model used and the assumptions within each model, most IV estimates I've read lie between about 1.4x BV and 1.6x BV. Call it 1.5x BV +/-6.8%. Chris Bloomstran just published his estimate of IV of $855,396/A-share ($570/B-share), or 1.72x BV. I use several models myself, and the range of results (between models and within models) is usually about +/- 6%-7%.
It's fun to read the different models, two-column, 2-1/2 column, look through earnings, five grove, DCF, sum of the parts, etc. (I won't say weighing machine). Each model offers insights, and each model gives somewhat different answers depending on the assumptions used. Please post or link the IV estimates that you come across. Thanks.
