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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.
JSE:LNF's Price-to-Net-Net-Working-Capital is not ranked *
in the Asset Management industry.
Industry Median: 6.53 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
London Finance & Investment Group (JSE:LNF) 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.
London Finance & Investment Group Net-Net Working Capital Related Terms
London Finance & Investment Group Net-Net Working Capital Historical Data
* 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.
London Finance & Investment Group Net-Net Working Capital Chart
JSE:LNF vs BLK, KKR, BX: Net-Net Working Capital Comparison
For the Asset Management subindustry, London Finance & Investment Group'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.
London Finance & Investment Group Price-to-Net-Net-Working-Capital vs Asset Management Industry
For the Asset Management industry and Financial Services sector, London Finance & Investment Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where London Finance & Investment Group's Price-to-Net-Net-Working-Capital falls into.
* 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.
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. 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.
What does a Net-Net Working Capital of R16.30 mean?
London Finance & Investment Group (JSE:LNF) has a Net-Net Working Capital of R16.30 as of Dec. 2024. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on London Finance & Investment Group
Is London Finance & Investment Group's Net-Net Working Capital too high?
London Finance & Investment Group's current Net-Net Working Capital is R16.30. Overall, London Finance & Investment Group has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does London Finance & Investment Group's Net-Net Working Capital compare to BLK and KKR?
London Finance & Investment Group's Net-Net Working Capital of R16.30 can be compared against companies in the Asset Management industry. The industry median Net-Net Working Capital is 6.53. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Asset Management company?
The median Net-Net Working Capital among Asset Management companies is 6.53, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on London Finance & Investment Group For the Asset Management industry, the median Net-Net Working Capital is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. London Finance & Investment Group's current Net-Net Working Capital is R16.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is London Finance & Investment Group stock overvalued right now?
London Finance & Investment Group (JSE:LNF) has a current Net-Net Working Capital of R16.30. The current Net-Net Working Capital is R16.30. London Finance & Investment Group's overall GF Score™ is 15/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For London Finance & Investment Group (JSE:LNF), the current Net-Net Working Capital is R16.30 as of Dec. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
London Finance & Investment Group PLC is an investment finance and management company. Its investment objective is to generate growth in shareholder value in real terms over the medium to long term whilst maintaining a progressive dividend policy. The company's portfolio includes companies in the FTSE Eurofirst 300 and S&P 500 indices. It also holds investments in United Kingdom listed companies. The company operates through two classes of business, Investment Operations, which derives maximum revenue, and Management Services.
15GF Score
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