Does Jitta Line indicate fair value? What are the factors that go into calculating Jitta Line, for example PE, PVB , P/S, Price/ free cash flow, yield?

Jitta Line is the fair value of a business. It is calculated based on the following principle: if we want to buy a business as a sole owner, how much we will pay for it in order to break even within 10 years. Our calculation approach comes from a solely business perspective without relying on any stock market’s valuation factors. Therefore, Jitta Line is not derived from PE, PVB, P/S or any of the above numbers.

You can see an explanation of Jitta Line ’s calculation method in Jitta 101 video Part 2 and Part 3

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