Beta is just one part of the equation. The Risk-free Rate and the Market Risk Premium also play a part. All three of these are in constant flux and together, form the ‘P’ in the P/E Ratio. I don’t understand how using the Beta to calculate the Cost of Capital equates to doing a rather bad Multiples valuation. Please explain if possible.
What part of a high level assessment did you not understand? Clearly I didn’t perform a complete valuation. Me and @iivans were having a general conversation about Valuations and I happened to show him how I might have valued Page in 2013. If you follow my valuations (Which I realize you may not), I do include Short term investments as a part of the value of a company.
Depreciation is done on Fixed Assets alone. Current Assets, especially Cash does not have a Depreciation. Cash is measured at Book Value always. More of my opinions on this in case you are interested:
I personally think every single part of a company’s value should be looked at and justified separately during the valuation process. If you think no justification is required and a click-of-the-button solution is the better way around, then I don’t mind. If this method of valuation works for you, all the better. More power to you.