The Frozen Corporation, A thought Experiment and case for good management.

When making investment decisions, what really matters? What is it that we're really doing? This post is meant to get at the crux of that very problem and get you thinking.

What is Frozen Co. worth?

Given:

• It makes 1B per year in revenue.

• 150M in Operating Profit (15% Margin)

• 80M Net (10% Margin)

• It will grow revenues at 5% for the next 20 years, at which point it will cease to exist.

• With Operating Margin, Net Margin, and Return on Capital Employed remaining steady over the period.

  
  

But:

• The company can't pay Dividends, Buy Back Shares, Sell Itself, or otherwise liquidate.

  Hence the frozen bit.

  
  

Meet Mr. Froze Co.

So... whats Froze Co. worth? Really Think!

The Answer?