JWeinCom said:
Cerebralbore101 said:
I had a financials course in college, and that is indeed how a company's worth is determined. Total Assets - Total Liabilities = Company value.
I'll have to look over the OP's documents later. I'll edit my post to accurately reflect the real difference between the two gaming divisions.
Edit: Yeah, I see what you mean. That widens the gap between Sony's Gaming Division and Nintendo to 33 billion yen.
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There's no definitive way to see a company's worth.
What you're referring to is book value. That is what the company would be worth assuming you wanted to buy the company and just liquidate all of its assets. But it doesn't take into account future earnings and such. But it doesn't take into account future potential, and a number of other things. It's somewhat useful, but nobody would really use it to determine the actual value of a company. Like, if someone wanted to buy Sony, there's basically a 0% chance they'd be paying exactly the book value.
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Right, it doesn't take into account the subjective and speculative side of doing bussiness.
