Investment Philosophy

Hidden Asset Method

The Hidden Asset Approach

“Hidden” assets are undervalued assets on a company’s balance sheet based on GAAP accounting, which can potentially lead to a disparity between the market value of a company and its intrinsic or private market value. Hidden assets can include real estate, reserves of natural resources, and inventory reserves. Overlooked or hard-to-value investment holdings, brand equities, and entitlements to litigation proceeds are further examples of hidden assets.

Boyar Research identifies the assets on a company’s balance sheet that we consider to be undervalued. We then adjust those items to our perception of their current market value. The information derived from this analysis helps us determine the intrinsic or private market value of a business. If a company’s stock is selling at a significant discount to our estimate of its intrinsic value, we may choose to profile it in one of our publications.

View a Boyar Research case study on the Hidden Asset Method.