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Vividend Management Group (JSE:VIF) Earnings Power Value (EPV) : R-5.62 (As of Aug13)


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What is Vividend Management Group Earnings Power Value (EPV)?

As of Aug13, Vividend Management Group's earnings power value is R-5.62. *

* 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.


Vividend Management Group Earnings Power Value (EPV) Historical Data

The historical data trend for Vividend Management Group'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.

* Premium members only.

Vividend Management Group Earnings Power Value (EPV) Chart

Vividend Management Group Annual Data
Trend Aug11 Aug12 Aug13
Earnings Power Value (EPV)
- - -

Vividend Management Group Semi-Annual Data
Feb11 Feb12 Feb13 Feb14
Earnings Power Value (EPV) - - - -

Competitive Comparison of Vividend Management Group's Earnings Power Value (EPV)

For the REIT - Diversified subindustry, Vividend Management Group'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.


Vividend Management Group's Earnings Power Value (EPV) Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Vividend Management Group's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where Vividend Management Group's Earnings Power Value (EPV) falls into.



Vividend Management Group 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.


Vividend Management Group  (JSE:VIF) 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.


Vividend Management Group Earnings Power Value (EPV) Related Terms

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Vividend Management Group Business Description

Traded in Other Exchanges
N/A
Address
Vividend Management Group was incorporated on 17 February 2010. It is a real estate investment trust ( REIT). The Company's portfolio consists of investments in assets and opportunities within the various property sectors in South Africa and abroad with primary focus on the retail, commercial, industrial and office sectors. The Company own a portfolio of 22 properties providing 223 444 square metres of retail and commercial space.

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