CHRIS GILMOUR: PSG is looking to narrow the discount
PSG’s discount to net asset value is 32%, which is much higher than the normal discount for investment-holding vehicles
28 April 2020 - 14:50
When analysing an investment holding company, the most useful metric is the discount or premium of share price to net asset value (NAV). Usually, the numbers come in at a discount, but in rare cases they trade at a slight premium.
PSG uses the sum-of-the-parts methodology in calculating NAV, which is elegant in its simplicity and clarity, with most of its underlying investments being listed. It requires adding up the value of the component parts, deducting group expenses, resulting in a net valuation. ..
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