What is the current NAV/BV of CPA? Thanks.
As I said, that's a bad way to look at it. As a result we don't publish those numbers on the forums. What would the point be? We don't sell our company at liquidation value. It's in our contract to maintain 100% backing. So, you can actually calculate our book value if you see all of our contracts, or if you could see our spreadsheet.
Book value is quite relevant; so are financial statements. I think it is quite reasonable to want access to such basic information. You would serve yourself better by not totally disregarding these things.
It is industry standard to use book value and price/book as base metrics to evaluate insurance companies.
No, it's industry standard to use earnings to value insurance companies.
Earnings are always calculated in just like all other factors; that is standard. What I said in regards to BV and P/B is they are the fundamentals that are more relied upon when analyzing insurance companies. I encourage you to research varying valuation methods and learn why BV and P/B are important in regards to valuating insurance companies.
I think the real issue here is what P/E we should assign to CPA. I feel 1 is extremely low. I can't possibly see how that is justified. If you look at forward P/E after we sign more and more contracts next year, it's around 0.4 or 0.3. That's insane.
That is not an issue. We don't choose to assign a P/E ratio, the market will do that on it's own. If you manage CPA well, the P/E is more likely to expand. If you manage CPA poorly, the P/E is more likely to contract. That is the natural way of the markets.
Ok lol. So let me get this straight. The market -- everyone but you -- comes up with a P/E to value CPA. But it's industry standard to value insurance companies by BV. Therefore you are interested in the BV of a company -- whose income has nothing to do with it's BV -- in order to assign value.
Do I have you straight on this one?
I stated that P/B is more applicable than P/E for analyzing insurance companies. I did not say that only one metric can be looked at; I simply said P/B is more pertinent. I am not sure why you focus on the P/E of CPA so much. Like I said before: If you manage CPA well, the P/E is more likely to expand. If you manage CPA poorly, the P/E is more likely to contract. That is the natural way of the markets. It is quite logical that I am interested in the
book value of a company to determine
value. There are all types of different 'value' that are useful to know- and book value is one of them.
The average NAV/BV for the sector is ~1.0 right now.
You're showing your stripes. First off, CPA is not in the mining or investment fund sector, so what you have said is just a verification of what I have said; people value it like a mining company, which is a big mistake. And one you seem intent on replicating.
Second, CPA is the only insurance company in the land of bitcoin. We're our own sector. And I say, it's worth more than a P/E of 1. Anyone who disagrees is free not to buy CPA.
What you quote there expresses nothing of a P/E ratio and there is zero mention of valuating CPA like a mining company. My mention of 'sector' was in regards to insurance.
With the average book value of major insurance companies in the sector being ~1.0, it would actually not be surprising to see CPA trade at a further discount to book.
Oh my god -- are you suggesting that
real-world insurance companies trade at a
P/E of ~1?
You didn't read my post did you? I mean this is like the 3rd separate issue you got wrong from what I said. *facepalm*
Look Factory, just stop arguing with me. It's clear you don't get it. If you think you are so smart, trade against me on CPA. You aren't listening and you don't appear to understand what the CEO of the company is telling you. Major clue time.
I stated that major insurance companies were trading around 1.0 to book value. I did not say P/E of ~1. I said I would not be surprised if CPA traded at a p/b ratio of less than 1.0. I recommend avoiding making such statements as "You didn't read my post did you?*" if you are going to read mine so poorly.
Again: If you believe CPA shares are grossly undervalued, why not release a financial statement? Surely an accurate depiction of it's balance sheet will clear most concerns. If the financial statement is in-line with your claims the share price will surely grow to reflect such.
