Pershing Square Tontine Holdings (Pershing Square Tontine Holdings) Net-Net Working Capital : $-1.37 (As of Mar. 2022)

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What is Pershing Square Tontine Holdings Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Pershing Square Tontine Holdings's Net-Net Working Capital for the quarter that ended in Mar. 2022 was $-1.37.

The industry rank for Pershing Square Tontine Holdings's Net-Net Working Capital or its related term are showing as below:

PSTH's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Diversified Financial Services industry.
Industry Median: 1.83
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Pershing Square Tontine Holdings Net-Net Working Capital Historical Data

The historical data trend for Pershing Square Tontine Holdings's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pershing Square Tontine Holdings Net-Net Working Capital Chart

Pershing Square Tontine Holdings Annual Data

Trend

Dec20

Dec21

Net-Net Working Capital

-5.45

-1.30

Pershing Square Tontine Holdings Quarterly Data
	Apr20	Sep20	Mar21	Jun21	Sep21	Dec21	Mar22
Net-Net Working Capital	Get a 7-Day Free Trial			-3.76	-2.92	-1.23	-1.30	-1.37

Competitive Comparison of Pershing Square Tontine Holdings's Net-Net Working Capital

For the Shell Companies subindustry, Pershing Square Tontine Holdings's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Pershing Square Tontine Holdings's Price-to-Net-Net-Working-Capital Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Pershing Square Tontine Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Pershing Square Tontine Holdings's Price-to-Net-Net-Working-Capital falls into.

Pershing Square Tontine Holdings Net-Net Working Capital Calculation

Pershing Square Tontine Holdings's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2021 is calculated as

	Net-Net Working Capital		(A: Dec. 2021 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(23.157	+	0.75 * 0	+	0.5 * 0	-	283.417
-	0	-	0)	/	200
=	-1.30

Pershing Square Tontine Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2022 is calculated as

	Net-Net Working Capital		(Q: Mar. 2022 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(22.33	+	0.75 * 0	+	0.5 * 0	-	297.12
-	0	-	0)	/	200
=	-1.37

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Pershing Square Tontine Holdings (NYSE:PSTH) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Pershing Square Tontine Holdings Net-Net Working Capital Related Terms

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Pershing Square Tontine Holdings (Pershing Square Tontine Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Pershing Square Tontine Holdings Ltd (NYSE:PSTH) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

787 Eleventh Avenue, 9th Floor, New York, NY, USA, 10019

Website

Pershing Square Tontine Holdings Ltd is a blank check company.

Executives

Michael Gonnella	officer: Chief Financial Officer	787 ELEVENTH AVENUE, 9TH FLOOR, NEW YORK NY 10019
Lisa Gersh	director	C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861
William A Ackman	director, 10 percent owner, officer: Chief Executive Officer	787 - 11TH AVENUE, 9TH FLOOR, NEW YORK NY 10019
Ps Management Gp, Llc	10 percent owner	787 - 11TH AVENUE, 9TH FLOOR, NEW YORK NY 10019
Pershing Square Capital Management, L.p.	10 percent owner	787 11TH AVENUE, 9TH FLOOR, NEW YORK NY 10019
Joseph S Steinberg	director	C/O LEUCADIA NATIONAL CORP, 315 PARK AVENUE SOUTH, NEW YORK NY 10010
Jacqueline D Reses	director	C/O SQUARE, INC., 1455 MARKET STREET #600, SAN FRANCISCO CA 94103
Michael S Ovitz	director	355 SOUTH GRAND, #1710, LOS ANGELES CA 90071
Steve Milankov	officer: Corporate Secretary	101 WEST 24TH STREET, APT. 30D, NEW YORK NY 10010
Ben Hakim	officer: Chief Financial Officer	170 E. 77TH STREET, APT. 5A, NEW YORK NY 10075