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# Tommy Hilfiger Corp. (TOM) Message Board

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• canel5 canel5 Dec 20, 2002 5:42 AM Flag

## intrinsic value is \$8,35

I calculate liquidation value as follows ;

Cash & Equivalents 392 x 1.00 = 392
Total Receivable 196 x 0,70 = 137
Total Inventory 270 x 0,50 = 135
Other Current Assets 90 x 0,70 = 63
Property/Plant/Equip 303 x 0,20 = 61
Other Long Term Assets 10 x 0,70 = 7
---------------------
Total Assets at liquidation = 795
All Liabilities = 1092
---------------------
Net Asset Value after lqdton = - 297
Shares Outstanding = 90.58
Per Share liquidation value = -3.27

I take next year eps est. 1,24
I take 10 year growth rate 10 %
I take discount rate 10% (conservative)
Future Value of TOM = 11.62
Per Share liquidation value = -3.27
Intrinsic Value of TOM = 8.35
Margin of Safety 8.35 x 0.5 = 4.17

GeneraLLy I take MOS 0.66 like Graham but on this market envoirement why not wait for a while more.

P.S : Sorry for my broken english as I am Turkish and live in Istanbul

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• How about something more real like take a multiple of market cap to tangible book value and market cap to sales for comparable public companies like Polo Ralph Lauren and American Eagle Outfitters. Multiple to tangible book should then be 2 to 3 and multiple to sales between .65 and .95 would make TOM worth 2 to 3 times current prices.