Wondering if someone could help clear this up for me.
In the vingette it states that the company " prefers to focus on companies willing to price their stocks at least 20% below their true value". The answer states “calculated value is 22% below the current offer price. Apple’s is 9.8% below the current offer price. Richmond Group should not buy either stake.” Is there a difference between “true value” and “calculated value”. The prompt says the company is trading at $17 a share, and the firms calculation came out to $13.23 a share.
Thanks!