Usagi. What is the current NAV of CPA? Thanks.
It is impossible to answer that question, because it does not apply to CPA. We're not an investment fund!
You see, NAV is not relevant here.
The term NAV is not limited simply to investment funds. There are multiple definitions. Net Asset Value and Book Value can be synonymous. Even though you should probably know that, I should have been more specific. Sorry.
What is the current NAV/BV of CPA? Thanks.
What you are probably thinking of is "book value", which in CPA's case would be the value of everything it actually owns at a moment in time. But this is a poor way of valuing an insurance company
It is industry standard to use book value and price/book as base metrics to evaluate insurance companies. As a matter of fact, book value and price/book hold more importance for the insurance industry than any other industry when performing analysis. Please share how you came to believe that book value provides little value when analyzing an insurance company.
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.
Regarding the prospects of additional contracts: Any attempt to determine a PEG ratio for an entity that has existed for such a short time will likely lead to an inaccurate assessment. While I have little doubt that there is potential for a growing number of contracts for CPA, a reasonable estimate can not be made. It is probably best if we avoid such attempts, as even those with the most intimate knowledge of CPA (Usagi) would likely not be able to make a proper determination.
But you're free to value us at NAV if you wish, and not buy CPA
The average NAV/BV for the sector is ~1.0 right now.
Now consider the following:
- The insurance companies on major exchanges are fully audited and are transparent- CPA is not.
- Most of the insurance companies on major exchanges have long track records. CPA has a very short track record, which means much harder to appropriately calculate. This is compounded by the refusal to make CPA's financial information public.
- The insurance companies on major exchanges employ vast amounts of people with advanced degrees in business, finance, math, and all other applicable fields. CPA employs one person, who from what I can tell holds no applicable degree or experience in any applicable field.
- Most established insurance companies are extremely conservative. CPA is not (CPA was involved in Pirate-related practices; something of unmeasurable risk due to it's 'black box' nature.)
- CPA is denominated in BTC. In terms of investing in securities, it must be viewed as an extremely volatile foreign currency with an unknown future. The total risk of uncertainty and potential to weaken should likely be factored in over the potential for btc to strengthen.
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.
Regardless of who thinks CPA is undervalued or overvalued, regardless of if the individual heading it is a genius or a complete imbecile; the following are certain:
With limited public information regarding the finances of CPA, price realization will be relatively slow and inaccurate.
If CPA is drastically undervalued it would make sense for Usagi to release a financial statement. If the financial statement is properly done, comprehensive, and clear, the market will likely begin to head in a path that more appropriately prices the shares of CPA. The numbers should not lie. It would certainly solve some of the issues raised on these forums. [/list]
