“The value investor attempts to measure the durable earning power a business can produce over time and determines a fair or bargain price for the enterprise. There are myriad ways to skin a cat, but those in the value corner occasionally find situations where either profits can expand faster than revenues or where the price paid today represents a discount to what a reasonable investor would pay for the present value of present and future profit. In other words, where margins or multiples are low.”
—Chris Bloomstran.
