You estimate that the present value of a firm's cash flow is valued at $15 million. The break up value of the firm if you were to sell the major assets and divisions separately would be $20 million. This is an example of what Peter Lynch would call ________.

A) a stalwart
B) slow growth
C) a star
D) an asset play

Present Value

The present worth of a future sum of money or a series of future cash flows, calculated using a particular interest rate.

Break Up Value

The estimated total value of a company if its assets were sold separately rather than as a going concern.

Asset Play

An investment strategy based on buying stocks of companies that are considered to have undervalued assets by the investors.