After talking about the
genesis of the CNAV strategy previously, I am going to disclose the method of analysis and calculation process in this article.
Calculating the CNAV
Before we dive deep into the calculation, you would need to understand the structure of the Annual Report and the
3 financial statements.
It will be easier to use Hongkong Land as an example to go through the calculation. The first page of the annual report we usually go to is the
Balance Sheet. I am using the Dec 2013 report which you can download from
SGX website.
These are items we would count as Assets: and let us be conservative and only consider properties and cash, and exclude other assets which are less valuable and stable:
- Leasehold land: $7.4m
- Investment properties: $23,583m (main bulk of their assets)
- Bank Balances: $1,406.3m (cash)
- Ignore Tangible fixed assets. Also known as Property, ...
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