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1 New to investing?

2 Confused by #fintwit jargon?

3 Do we trust people presenting “valuation” to know what they don't know?
(Hint: “my-laser-eyed-golden-skin-ape-pic-is-worth-at-least-twice-your-diamond-skin-ape-pic” = relative pricing. Not valuation)

Follow #PiggyBack🧵

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Equity = Assets - Liabilities

But what asset and liability values are we going to use?

The answer as always: it depends on what we are going to use it for.

Here is a summary of equity metrics, from the most conservative:

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Price/”Net-Net” Working Capital (P/NNWC)

Classic Graham/Dodd strategy

Assumes: Use only most liquid current assets, deduct subjective discounts.

Conditions (often missed in screens):
1) Not consuming assets (melting ice cube/negative cash-flow)
2) Historical profitability

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