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Value Line Owner Earnings per Share (TTM)

: 2.55 (As of Jul. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Value Line's Owner Earnings per Share (TTM) ended in Jul. 2021 was $2.55. It's Price-to-Owner-Earnings ratio for today is 16.93.


The historical rank and industry rank for Value Line's Owner Earnings per Share (TTM) or its related term are showing as below:

NAS:VALU' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 1.77   Med: 17.59   Max: 40.58
Current: 16.91

1.77
40.58

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Value Line was 40.58. The lowest was 1.77. And the median was 17.59.


NAS:VALU's Price-to-Owner-Earnings is ranked lower than
60% of the 418 Companies
in the Capital Markets industry.

( Industry Median: 12.37 vs. NAS:VALU: 16.91 )

Value Line's Earnings per Share (Diluted) for the three months ended in Jul. 2021 was $0.62. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2021 was $2.52. It's PE Ratio ratio for today is 17.13.

Value Line's EPS without NRI for the three months ended in Jul. 2021 was $0.62. Its EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2021 was $2.52. It's PE Ratio without NRI ratio for today is 17.13.


Value Line Owner Earnings per Share (TTM) Historical Data

The historical data trend for Value Line's Owner Earnings per Share (TTM) 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.

Value Line Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.99 0.81 1.21 1.22 2.45

Value Line Quarterly Data
Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.96 2.09 1.92 2.45 2.55

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Value Line's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) 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.

   

Value Line Owner Earnings per Share (TTM) Distribution

For the Capital Markets industry and Financial Services sector, Value Line's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Value Line's Owner Earnings per Share (TTM) falls into.



Value Line Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Value Line's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 24.06
Depreciation, Depletion and Amortization 1.31
Change In Deferred Tax 0.28
5Y Average of Maintenance Capital Expenditure 0.42
Change In Working Capital -0.82
Shares Outstanding (Diluted Average) 9.56

1. Start with "Net Income" from income statement. Value Line's Net Income for the trailing twelve months (TTM) ended in Jul. 2021 was $24.06 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Value Line's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jul. 2021 was $1.31 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Value Line's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jul. 2021 was $0.28 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $0.42 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Value Line's 5-Year Average Maintenance Capital Expenditure = $0.42 Mil

5. "Change In Working Capital" is from cashflow statement. Value Line's Change In Working Capital for the trailing twelve months (TTM) ended in Jul. 2021 was $-0.82 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Value Line's Shares Outstanding (Diluted Average) for the months ended in Jul. 2021 was 9.560 Mil.

Value Line's Onwer Earnings Per Share for Jul. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 24.06 +1.312+0.275
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-0.4213995276729+-0.815)/9.560
=2.55

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=43.17/2.55
=16.93

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Value Line Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Value Line's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Value Line Business Description

Value Line logo
Industry
Financial Services » Capital Markets NAICS : 523210 SIC : 7323
Traded in Other Exchanges
N/A
Address
551 Fifth Avenue, 3rd Floor, New York, NY, USA, 10176-0001
Value Line Inc is a U.S based company. It produces investment periodicals based on underlying research and making available copyright data, including ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment being Publishing.
Executives
Fiore Alfred R director 1 ANGORA ROAD WESTPORT CT 06880
Brecher Howard A director, officer: Chairman and CEO VALUE LINE 220 E 42ND ST SUITE 600 NEW YORK NY 10017
Anastasio Stephen director, officer: Vice President and Treasurer 220 E 42ND STREET NEW YORK NY 10017
Muenzer Glenn J. director 357 HARVARD COURT EAST MEADOW NY 11554
Reed William Edward director 12 KNORR STREET NORWALK CT 06854
Bernstein Mary director 220 E 42ND STREET NEW YORK NY 10017
Davis Stephen P director 57 EAST 95TH STREET NEW YORK NY 10128
Sarkany Thomas director, officer: Secretary 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Perkins, Robert M. director 220 EAST 42ND STREET, 6TH FLOOR NEW YORK CITY NY 10017
Legon, Ruth O. director 220 EAST 42ND STREET, 6TH FLOOR NEW YORK CITY NY 10017
Appel Mitchell Eric officer: Chief Financial Officer VALUE LINE INC 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Arnold Bernhard & Co Inc 10 percent owner 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Eakman Janet director 220 E 42ND STREET NEW YORK NY 10017
Shanahan Edward J director 220 EAST 42 STREET NEW YORK NY 10017
Asher Marianne B director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ASHER MARIANNE B a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
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