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A Private Market Approach to Valuation – Christopher Karlin

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A Private Market Approach to Valuation – Christopher Karlin

0:00sure you know I think a we we look at at
0:04mostly the same models that are the people working at
0:07I’m them predominant 10 we look at is sort of a a user-defined
0:12I wanna love %um pre-tax discretionary cash flow which
0:16you for for the purposes are up like be writing I’m
0:19I’m napkin it was implicated as he bit down minus
0:23mice maintenance capital expenditures and and so the idea being that
0:28really we’re looking when we see private market approach to valuation
0:32is we’re looking at atwater reasonable buyer would pay
0:36to own the business an entirely on a more personal level we’re looking at it
0:40from the standpoint
0:41on if if you had you know
0:44all your net worth you could invest in this company and
0:48there is no liquidity that you have to earn a return
0:51and and your your future economic success is entirely dependent
0:55on on this asset we can generate for you
0:59your be to cash flow or whether it be through asset appreciation
1:02i && your turning over the portfolio through
1:06through asset sales wide I what would your return be
1:10so what would what price would you be willing to pay in order to have all your
1:13wealth tied up
1:14you know specific company indefinitely and and that’s really when we talk about
1:19private market
1:22the what

Large Cap Value Style

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