A short YouTube talk by Ndubuisi 'Andy' Egwim explaining equity/shareholder basics and how to identify an undervalued investment using a concrete example: a specialist hospital with a book value of £5 million being offered for £2.5 million (50% of book value). The speaker highlights that shareholders bear risk and share in gains/losses and uses the hospital sale to illustrate an undervalued opportunity.
Chapters
So it's not. Depth is equity. They are shareholders. That's why it's called shareholders. They own part of the business. If the business goes down, they will lose money. If the business makes money, they will make money. So you don't have to pay them back any money, but they have to share in the, the dividends. So they share in their losses and in the risk and in the gains of the company. So £2.5 million. Dr. Mary Jane wants to sell a specialist hospital. So basically, if you look at it, why are considering the deal I'm, I'm believing is that the book value of that hospital is £5 million. And Dr. Mary Jane wants to sell it at £2.5 million. So now it's like 50 under the book value. Now it's not the only number we look at, but now do you understand what it means for something to be undervalued when we're saying this is an undervalued investment? Of course, if you are lucky to find any book value 50%, please call me. Let's analyze the stock together.