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Topic:

Topic created : 23.03.2020, 22:37

ChrisTekk

EcoTech SE

I checked some of the Enterpises on sale (My Company - Markets - Enterprise market).
I found a store with interesting product inventories at good quality and supply prices.

So I went on to double check the pricing of the store on sale:
$191'000'000 is the value of all inventories (stock) (quantities multiplied by average buying prices)
$2'135'113'303 is the "value of assets" as listed in the "Enterprise Market" table
$1'494'579'312 is the offering price - at a listed "discount" of $640'533'990

I was wondering which hidden assets I am missing ? - assets worth $1.2 billion.
Anyone got a clue - pls let me know.

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25.03.2020, 15:10

ChrisTekk

EcoTech SE

Anyone can help me to understand store valuation ?

Here's the link to the example cited above:
https://virtonomics.com/mary/main/unit/view/4779596/trading_hall ...

25.03.2020, 16:03

faiez

ChrisTekk
I checked some of the Enterpises on sale (My Company - Markets - Enterprise market).
I found a store with interesting product inventories at good quality and supply prices.

So I went on to double check the pricing of the store on sale:
$191'000'000 is the value of all inventories (stock) (quantities multiplied by average buying prices)
$2'135'113'303 is the "value of assets" as listed in the "Enterprise Market" table
$1'494'579'312 is the offering price - at a listed "discount" of $640'533'990

I was wondering which hidden assets I am missing ? - assets worth $1.2 billion.
Anyone got a clue - pls let me know.

The game values stock with a different method.

It doesn't just take the buying cost. I think it used average prime cost of the entire game world production and uses that to calculate stock value. The buying cost is often low (when supplying stores from your own factories/warehouses) to keep customs low.

Other assets may be trademark etc, which are not that much. Mostly its stock when you buy a store.

When buying stores, just check if it would be profitable for you and how much it will be profitable. If its viable for you, then buy it. Buying a store at best saves you an update or two plus time taken to setup a new store.

btw, buying a discounted asset increases your assets. So if you're looking to just increase assets regardless of whether you can convert that asset back to cash or not, its a fast way to do it.

So if I have $5Billion extra cash and use it to buy assets at 30% discount, that 5 billion will become ~7billion by next update. Whether I can convert that 7 billion asset into real cash is a separate story. Also, its rare to find a profitable unit for sale. Most of the time you end up putting a lot of effort into getting the unit into profitability.

25.03.2020, 16:05

faiez

ChrisTekk
Anyone can help me to understand store valuation ?

Here's the link to the example cited above:
https://virtonomics.com/mary/main/unit/view/4779596/trading_hall ...

I think the store is already sold. And the buyer has probably already taken out all the stock and sent to warehouses to resell.

25.03.2020, 17:06

Last time edited : 25.03.2020, 17:07

Wow, my store Well

The game does not measure assets at the cost of production.
Example:
Oranges, flowers, and many other plant products are rated very cheaply by the game.
Potatoes (about 4000 depending on quality) and tobacco (1-2 thousand) are priced quite expensive.
At the same time, the cost of production of all these plant products is approximately equal to less than $ 1 per unit.
In addition, the estimated value may change every recount, even if this product is not produced.

When evaluating absolutely exactly: the quality of the goods, the average quality of the goods on realm.
Probably taken into account: the volume of wholesale and retail trade and prices, as well as indicative prices.

The principles of valuing assets for me are still one of the few puzzles in this game.

27.03.2020, 22:52

ChrisTekk

EcoTech SE

Hi Synta, many thanks for your guidance.

So if you're looking to just increase assets regardless of whether you can convert that asset back to cash or not, its a fast way to do it.

Interesting approach - have not looked at it that way. Why would I want to "just increase assets" - what's my benefit ?

27.03.2020, 23:07

ChrisTekk

EcoTech SE

Schmatko,

thanks for sharing your thoughts on the topic. It's true, unlike in real life (if not Google), for the "game administrator" it should be rather simple to value a store/warehouse with many products based on world market average prices / qualities.

IN CASE the "game administrator" valuation takes into account reasonable (i.e. 'marketable') prices - any discounted offering would be a good deal (as Synta suggests), and on top it would be possible to profitably "liquidate" all assets. The only task being to find that fair marketable price, and not sell below value.

IN CASE NOT... For me myself, it is extremely tredious to check if a unit is a "good deal" to buy. If not I am missing the trick how to do it.
Does not seem I will engage in digging through stores/warehouse units on offer for now.

28.03.2020, 10:51

ChrisTekk
Hi Synta, many thanks for your guidance.

So if you're looking to just increase assets regardless of whether you can convert that asset back to cash or not, its a fast way to do it.
Interesting approach - have not looked at it that way. Why would I want to "just increase assets" - what's my benefit ?

To complete tasks and to be able to issue more bonds.

29.03.2020, 17:20

faiez

SchmatkoA
ChrisTekk
Hi Synta, many thanks for your guidance.

So if you're looking to just increase assets regardless of whether you can convert that asset back to cash or not, its a fast way to do it.
Interesting approach - have not looked at it that way. Why would I want to "just increase assets" - what's my benefit ?

To complete tasks and to be able to issue more bonds.

Or just get higher in the assets rank Very we!

29.03.2020, 17:32

faiez

ChrisTekk
Schmatko,

thanks for sharing your thoughts on the topic. It's true, unlike in real life (if not Google), for the "game administrator" it should be rather simple to value a store/warehouse with many products based on world market average prices / qualities.

IN CASE the "game administrator" valuation takes into account reasonable (i.e. 'marketable') prices - any discounted offering would be a good deal (as Synta suggests), and on top it would be possible to profitably "liquidate" all assets. The only task being to find that fair marketable price, and not sell below value.

IN CASE NOT... For me myself, it is extremely tredious to check if a unit is a "good deal" to buy. If not I am missing the trick how to do it.
Does not seem I will engage in digging through stores/warehouse units on offer for now.

yeah it is tedious. I usually keep one window of "products" open and in the other compare the prime cost in the warehouse on sale. If most of the products are profitable, I buy. Stores are a complete hit and miss and alot harder to analyse.

Also, just because there is a big discount on the warehouse, does not mean you will be able to sell it profitably or even at break even. Some times in some sectors there is a huge over supply of product and most players are selling that product at loss. There are many such industries like chemical industry or steel etc (at least on lien). The only thing you are guaranteed to get in such deals is instant increase in assets sustainable as long as you can pay the warehouse rent.

A good rule of thumb is to only buy factories that you NEED. i.e. you are selling a product profitably but cant find reliable stable suppliers so you want to setup your own factory, but dont have the tech, nor can you afford to buy the tech, so just look for a factory on the market with the right tech and start producing.

3.04.2020, 19:56

ChrisTekk

EcoTech SE

Thanks Synta, that's good guidance on warehouse, store and factory purchases ;)

BTW, I found indication tahat the global production/quality reports provide the value per good used in inventory valuation by the system: In one case, I found honey (qual 16) being valued at $98. Would be a hard sale ;)

4.04.2020, 15:41

faiez

ChrisTekk
Thanks Synta, that's good guidance on warehouse, store and factory purchases ;)

BTW, I found indication tahat the global production/quality reports provide the value per good used in inventory valuation by the system: In one case, I found honey (qual 16) being valued at $98. Would be a hard sale ;)

That means the market prices are most likely below cost. They are selling at a loss.

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