The chapter explores the valuation of a public company offering river tours in the Grand Canyon, using the concept of sticker price and PE ratio multiples to determine its future worth. It emphasizes the importance of finding an investment with a minimum acceptable rate of return of 15% a year and discusses the process of calculating a fair price for a business that ensures a profitable return.
In part 2 of this margin of safety series, Phil goes into the math of buying a business on sale. For show notes and more information visit www.ruleonepodcast.com
Learn more about your ad choices. Visit megaphone.fm/adchoices