Intrinsic Value
John Hancock Preferred Income Fund (HPI)
$15.89
+0.21 (+1.34%)
| Enterprise Value | 74.24 |
|---|---|
| Net Debt | 256.87 |
| Equity Value | -182.63 |
| Shares Outstanding | 26.51 |
| Equity Value Per Share | -6.89 |
Because investors are more interested in the value of the company’s shares alone, we’ll deduct net debt from this value to arrive at a fair value of the company’s equity. Fair Value = Enterprise Value – Debt