Like Graham and Dodd suggested in Security Analysis, If a stock is selling below it’s liquidation value, it means a serious error is being committed by:

A. The judgement of the stock market.

B. In the policies of the company’s management.

C. In the attitude of the stockholders towards their property.

Just like how earnings can be used to return value to shareholders, liquid assets can be used to return value to shareholder. But the funny thing is, often times in the market, the primary focus on a business is it’s earnings, not it’s assets. This can leave large discrepancies in valuations and opportunities for outsized returns. If you can figure out which of the three reasons is causing the potential mispricing, the opportunities can be big.