When should you value a company using book value instead of future cash flow?

Not every business has a clear growth story.
Sometimes, the value lies in what it already owns.

✅ Loss-making companies — no profits, but still have assets
✅ Distressed businesses — when you’re thinking about liquidation
✅ Asset-heavy companies — factories, real estate, etc.

In these cases, book value gives you a better picture than DCF or P/E.

At ORNA, we don’t force every business into one formula.
We choose the method that fits the real situation.

Contact us for more detail 🙂