Cut price or best value?

摘要

A year ago, Sainsbury's and Alliance Boots were struggling high street retailers. Today, they are property treasure troves, albeit with troublesome pension liabilities, being vigorously courted by private equity funds. Oh, and they sell consumer products as well, in competition with many others. This change in perception about both companies' prospects and their value to acquirers has had a dramatic impact on their share prices - up by 60% - yet as businesses they remain fundamentally the same. So how do such changes in value make sense? How should value be assessed?