BRIAN KANTOR: How to calculate how ill your shares are due to Covid-19
During these uncertain times, it is difficult to arrive at an exact number
As the owner-manager of a small business in SA subject to the lockdown, how should you calculate the damage to the value of your restaurant or book shop or hairdressing salon? With no customers or revenue to speak of, but with some unavoidable costs still incurred, some of the damage to the value of your business will be permanent.
This amounts to the accumulated loss of earnings or profits that would have been expected absent the lockdown; the difference between what you would have expected to earn before the coronavirus catastrophe and what you can now expect to earn from your business over its hopefully continued life as a going concern.