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Jana Small Finance Bank (NSE:JSFB) Earnings Power Value (EPV) : ₹-322.93 (As of Mar24)


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What is Jana Small Finance Bank Earnings Power Value (EPV)?

As of Mar24, Jana Small Finance Bank's earnings power value is ₹-322.93. *

* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.

Margin of Safety is N/A.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future. Assumption: Current profitability is sustainable.


Jana Small Finance Bank Earnings Power Value (EPV) Historical Data

The historical data trend for Jana Small Finance Bank's Earnings Power Value (EPV) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Jana Small Finance Bank Earnings Power Value (EPV) Chart

Jana Small Finance Bank Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Earnings Power Value (EPV)
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Jana Small Finance Bank Quarterly Data
Mar18 Mar19 Sep19 Mar20 Sep20 Mar21 Mar22 Sep22 Mar23 Sep23 Mar24
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Competitive Comparison of Jana Small Finance Bank's Earnings Power Value (EPV)

For the Banks - Regional subindustry, Jana Small Finance Bank's Earnings Power Value (EPV), along with its competitors' market caps and Earnings Power Value (EPV) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Jana Small Finance Bank's Earnings Power Value (EPV) Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Jana Small Finance Bank's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where Jana Small Finance Bank's Earnings Power Value (EPV) falls into.



Jana Small Finance Bank Earnings Power Value (EPV) Calculation

Earnings Power Value also known as just Earnings Power is a valuation technique popularised by Bruce Greenwald, an authority on value investing at Columbia University. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. This valuation tool excludes the potential growth that a company may have so that needs to be looked at separately. Since future growth is excluded from the analysis, only the maintenance capital expenditures are subtracted from after-tax EBIT (earnings before interest and taxes) and growth capex is ignored.


Jana Small Finance Bank  (NSE:JSFB) Earnings Power Value (EPV) Explanation

Assumption: Current profitability is sustainable.

Earnings power value (EPV) uses a very basic equation which assumes no growth, although it does rely on an assumption about the cost of capital as well as the fact that current earnings are sustainable. It also involves several adjustments to clean up the underlying Earnings figures.


Be Aware

Though using today's earnings in calculating Earnings Power Value, GuruFocus is normalizing these earnings to the business cycle. This eliminates the effects on profitability of valuing the firm at different points in the business cycle. This means that we are considering the average earnings over 5 years.


Jana Small Finance Bank Earnings Power Value (EPV) Related Terms

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Jana Small Finance Bank (NSE:JSFB) Business Description

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Jana Small Finance Bank Ltd is engaged in the banking sector. It is engaged in savings accounts, current accounts, Deposits, Insurance, Loans such as secured business loans, microloans against property ("Micro LAP"), MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans, and gold loans. It operates in four segments namely the Treasury segment, Corporate/Wholesale Banking segment, Retail Banking segment, and Other Banking Operations segment. The retail banking segment includes lending to and deposits from retail customers and identified earnings and expenses of the segment. Maximum revenue is generated from the Retail Banking segment.

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