George Gabriel, CFA posted a nice article on GuruFocus.com. I liked most the part regarding the six components of value:
1. “Net-Net” valuation method. It attributes value only to the net current assets (current assets minus current liabilities) of the company and attributes zero value to property, plant & equipment or any other long-term assets.
2. Liquidation value of assets. (self-explanatory)
3. Book Value of Assets. (also self-explanatory)
4. Reproduction value of assets. Reproduction valuation measures what it would cost to reproduce the market position of a particular company.
5. Valuation of the Earnings of the Business. Future Free Cash Flow discounted back to present.
6. Franchise Value. The wider the moats, the more valuable the company is.