News: VRL Village Roadshow Signed Agreement To Sell Wholly Owned Wet'n'wild Water Park, page-39

On the HY statement total assets was 1.5 billion, goodwill & intangibles was 380m. So an assumption of 1b in assets is about right. But if assets are not generating a return above the cost of capital + risk free rate then they simply must be discounted.

I would only value the assets if the assets cannot be replicated & provide a service that is a constant (like an airport). The cinema assets are worthwhile, but the theme park assets for me are a headache - capex intensive & currently generating negative returns (nothing worse).

But because there is strong competition in the cinema field, you cant value the assets without accounting for liabilities (NTA). In contrast, a company like Transurban or Sydney Airport you could value on assets alone - as their assets cannot be replicated and the barriers to entry are huge, & road & airport use is a constant.

I still think VRL can go much lower. Below $1.5 perhaps.