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Emerald Holding (Emerald Holding) Owner Earnings per Share (TTM)

: 0.31 (As of Dec. 2023)
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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)."

Emerald Holding's Owner Earnings per Share (TTM) ended in Dec. 2023 was $0.31. It's Price-to-Owner-Earnings ratio for today is 20.4.


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

EEX' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 1.07   Med: 4.62   Max: 106.79
Current: 20.91


During the past 10 years, the highest Price-to-Owner-Earnings ratio of Emerald Holding was 106.79. The lowest was 1.07. And the median was 4.62.


EEX's Price-to-Owner-Earnings is ranked worse than
65.88% of 425 companies
in the Media - Diversified industry
Industry Median: 12.18 vs EEX: 20.91

Emerald Holding's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $-0.46. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $-0.79. It's PE Ratio ratio for today is At Loss.

Emerald Holding's EPS without NRI for the three months ended in Dec. 2023 was $-0.42. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $-0.76. It's PE Ratio without NRI ratio for today is At Loss.


Emerald Holding Owner Earnings per Share (TTM) Historical Data

The historical data trend for Emerald Holding'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.

Emerald Holding Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -10.28 0.40 2.67 0.31

Emerald Holding Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 2.67 2.51 2.41 0.06 0.31

Competitive Comparison

For the Advertising Agencies subindustry, Emerald Holding's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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.


Emerald Holding Price-to-Owner-Earnings Distribution

For the Media - Diversified industry and Communication Services sector, Emerald Holding's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Emerald Holding's Price-to-Owner-Earnings falls into.



Emerald Holding 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)

Emerald Holding's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income -8.2
Depreciation, Depletion and Amortization 45.0
Change In Deferred Tax 1.3
5Y Average of Maintenance Capital Expenditure 6.3
Change In Working Capital -12.6
Shares Outstanding (Diluted Average) 62.9

1. Start with "Net Income" from income statement. Emerald Holding's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-8.2 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Emerald Holding's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2023 was $45.0 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. Emerald Holding's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2023 was $1.3 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $6.3 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 quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, 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.

Emerald Holding's 5-Year Average Maintenance Capital Expenditure = $6.3 Mil

5. "Change In Working Capital" is from cashflow statement. Emerald Holding's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2023 was $-12.6 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. Emerald Holding's Shares Outstanding (Diluted Average) for the months ended in Dec. 2023 was 62.885 Mil.

Emerald Holding's Onwer Earnings Per Share for Dec. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( -8.2 +45+1.3
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-6.2701643500226+-12.6)/62.885
=0.31

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=6.3248/0.31
=20.4

* 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.


Emerald Holding Owner Earnings per Share (TTM) Related Terms

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Emerald Holding (Emerald Holding) Business Description

Traded in Other Exchanges
Address
100 Broadway, 14th Floor, New York, NY, USA, 10005
Emerald Holding Inc is an operator of B2B trade shows in the United States by NSF. It operates trade shows, which serve a large and broad set of global exhibitors and attendees, across multiple attractive, fragmented sectors that represent significant portions of the U.S. economy. The company operates trade shows in several broadly-defined industry sectors namely, Gift, Home and General Merchandise, Sports Design and Construction, Technology, Jewelry, Other Trade Shows, Other Events, and Other Marketing Services amongst other. It operates in three segments: Commerce; Design, Creative, and Technology; and All others.
Executives
Danielle Puceta officer: EVP, Content & Commerce 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Issa Jouaneh officer: President, Connections 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Brian Field officer: Chief Operating Officer EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
David Saul Levin director EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
William Charles officer: Chief Information Officer EMERALD EXPOSITIONS EVENTS, INC., 31910 DEL OBISPO STREET, SUITE 200, SAN JUAN CAPISTRANO CA 92675
Stacey Sayetta officer: General Counsel EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Mitchell Gendel officer: General Counsel EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
David B. Doft officer: CFO & Treasurer EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Herve Sedky officer: CEO & President EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Lynda M Clarizio director 200 N. MILWAUKEE AVENUE, VERNON HILLS IL 60061
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