In valuing a company, a one year snapshot, clearly, is not a good idea. Hence people try to 'normalize' the view of the company by taking into account factors such as the economy, an unusual company event etc.

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The idea of 'normalized' has been translated into 'bob-around' by Warren Buffett. Buffett's explanation is recounted in 'Seeking Wisdom from Darwin to Munger', by Peter Bevelin:

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