Nintendo currently has $4.7 billion in the bank

[foxtail]

Skidonti said:

foxtail said:

MDMAlliance said:

So basically you're confirming that the value provided up there isn't necessarily based on assets but an analysis on how much Xbox might be worth based off of Nintendo's "multiples"?

Basically yes, their analysis is not based on assets or anything of the sort.  I think if people really want to know what the Xbox division is worth then MS should release thorough, clear and transparent financials for Xbox division alone. 

For comparison, by Nintendo's PSR multiple Bloomberg estimated the Xbox division was worth $17 billion less than seven months earlier.

It seems to be based on relative current market perfomance (essentially, stock trades n' stuff), but I don't know how they're isolating Xbox from the rest of MS to even do the calculation... but it's not like I'm an afficionado. In general it just seems like there are a lot of variable factors involved in the estimation method and we can't really know without MS just telling us.

I think all they did was a simple P/S calculation, and by that they took Nintendo's stock price at the time and calculated that it sold for 2.4 times its trailing 12-month revenue.  I think they then multiplied that 2.4 number by the estimated 7 billion in Xbox revenue =  16.8 billion (~17B).  This multiple is not an fair or accurate way to valuate the Xbox division because of how fundamentally different it is to Nintendo as a whole.

Not only that but focusing on revenue may be misleading giving a high value to the Xbox division because it generates a high revenue while actually losing significant amounts of money, it is a low margin business for MS.