@keygeo it's not based on net assets..... It is based on cash...

@keygeo it's not based on net assets.....

It is based on cash flows expected to be received and paid in the future. Part of the cash flows I have in my model are based on the assets they currently hold for sure (e.g. pdls that they have purchased in the past). However, the larger part are actually based on cash flows derived from purchases of assets in the future (pdls not yet currently acquired) and growth in collection services revenues. You appear to be misreading what I have presented. What I have presented is a standard discounted cash flow analysis that projects future estimates of cash flows and discounts them to present value using a risk adjusted discount rate. This is a very standard type of valuation approach and one that most research analysts will use as their base valuation model....