Here is a riddle, for shareholders of Skechers. The company in this example is not Skechers but it applies to the valuation of Skechers. The first assumption of the riddle is that Company X has $20 a share of intrinsic business value. This number is not in question by anyone it is a fact.
Now lets say in this fictitious company there are only two shareholders you and me. You own 100% of the company but have never been paid. I own 0% of the company but I have the control and I have frequently been paid. I am paid yearly in a salary and have frequently issued options to myself over the years which I have sold to you for a tremendous sum of wealth. You have never received a dime in the company, but you have equity of $20 a share.
You may be paid one day.
How much is each share worth? And who is wealthier you or me?