If NYC had a price tag how much would it cost.
Taking into account all the building, ports, etc, my guess is that it would probably be 1 trillion.
Whats your guess?
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NYC is priceless
NYC GDP alone is 1.3trillion so
i think youre underbidding a bit
Yeah, your right.
I feel like this is something that could be found since everything has to be assessed for taxes anyway. Just add all those values up and add another $176 million for GS' HQ which was completely legitimately (lol) undervalued to save them money.
Considering trophy properties can break a billion, and even walk ups can be close to 10 million, a trillion doesn't sound like all that bad of a guess imho.
about tree fiddy
Are we talking just the real estate? Or do you get to own the businesses, people and other stuff in NYC?
The people. hah, classic.
Also, would we have access to the Jets, and if so, could we spin them off?
.
If you invested the amount the indians were paid for manhattan you could buy all of the island 3 times over with that investment money today.
If just the RE then you can start by looking at the balance sheet of the City's CAFR: http://www.comptroller.nyc.gov/bureaus/acc/cafr-pdf/CAFR2012.pdf. The City has almost $90B in capital assets.
The tough part would be to estimate private property. Also, considering the perpetual budget deficits then would you negatively discount from the City's income statement... subtract from total GDP to adjust for private sector.
That depends, are we allowed to spin-off Bloomberg. He is a major toxic asset on the balance sheet.
Well the net worth of the US was $91 trillion at the end of 2012 (according to Fed). US GDP was $15 trillion at the end of 2012. So using a 6x comparable multiple of the whole economy we can deduce the net worth of NYC is $(1.3*6) = $7.8 trillion. BUT that's only equity value.
So to get enterprise value, $7.8 trillion + debt - cash + minority interest + capital leases + preferred shares. Lets assume lease, preferred = 0. Lets assume that m1 money supply = cash and we'll use % of m1 money supply in the us as a proxy for cash and % of debt to gdp in the us as a proxy for debt.
m1 = 2.53 trillion = 16.87% so cash = .1687* = .219 trillion debt = (harder to find figures here since that national debt clock is screwed up since it shows unfunded liabilities and shit) It has ranged but 3x GDP seems about right, so assume 45 trillion. So assume NYC has 3.9 trillion in debt.
So, EV = 7.8 + (3.7) = $11.5 trillion. Net Worth = $7.8 trillion.
Share price (net worth/population) = $975,000 EPS (GDP/population) = $162,500 EPS attributable to common = $59,000 (actual gdp figures of NYC per capita)
Why the huge gap? Well, we are ignoring minority interest. Our net worth figure isn't market cap. It already includes minority interest.
Diluted EPS attributable to common (we will assume a 2.12% pregnancy rate CIA world factbook, for women and assume some options aren't in the money i.e. infant mortality and abortion so 2% birth rate) = 4m women * .02 = 80,000 babies = $58,941 (assuming 8m + 80k babies population dilution).
sources: http://www.federalreserve.gov/releases/z1/current/z1.pdf http://en.wikipedia.org/wiki/Financial_position_of_the_United_States
This is the best answer. +1.
This means its trading around 8.46 EV/EBITDA which seems reasonable for such an entity. I'm not really sure that we have any sector comparables to go off of.
Well sourced post I liked it.
lol @ finance nerds trying to price a city
u beat me 2 it :(
Grab the county equalization reports for all the counties NYC is in and you can see the assessed/taxable value for the City. According to the last bond issue official statement New York City has an assessed full valuation of $858,382,971,251. I'm not sure how New York works but I'm guessing there is renaissance zoning and other zoning that is exempt from taxation as well, you figure that comes out to another 5-10% (at least) added on to that total. That puts you right up near the 1T mark in property alone.
That's fine and all but you can find the cash + debt in the City's CAFR. The city had about 42B of long-term debt as of fiscal year 2011. Check the back of their most recent OS @ http://emma.msrb.org/EP702205-EP544039-EP945169.pdf and it will give you pretty much all the info you need to do a much better valuation.
So it looks like: For the property= ~$1t For the underlying businesses= ~$7.8t WSO coming up with a legitimate answer ftw, lol
Lol, no.
lol possible for $10 USD to grow to $2T in 200 years? not shure
This is a common exercise on the first day of intro to finance. Show how at 10% compounding yearly in 300 or 400 years you end up with like $10 trillion or something. Meaningless exercise, in my opinion. Which asset class are they suggesting has posted 10% compounding returns since 1700? How would I buy this class? It's not like I could just buy the SPDR S&P 500 ETF back then.
Actually, this has been proven in numerous papers done by some of the best economists in the county's history.
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