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Pinterest (NYSE:PINS) Owner Earnings per Share (TTM)

: -0.35 (As of Mar. 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)."

Pinterest's Owner Earnings per Share (TTM) ended in Mar. 2023 was $-0.35. It's Price-to-Owner-Earnings ratio for today is 0.


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


During the past 6 years, the highest Price-to-Owner-Earnings ratio of Pinterest was 166.36. The lowest was 0.00. And the median was 161.13.


PINS's Price-to-Owner-Earnings is not ranked *
in the Interactive Media industry.
Industry Median: 17.14
* Ranked among companies with meaningful Price-to-Owner-Earnings only.

Pinterest's Earnings per Share (Diluted) for the three months ended in Mar. 2023 was $-0.31. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2023 was $-0.45. It's PE Ratio ratio for today is At Loss.

Pinterest's EPS without NRI for the three months ended in Mar. 2023 was $-0.31. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2023 was $-0.45. It's PE Ratio without NRI ratio for today is At Loss.


Pinterest Owner Earnings per Share (TTM) Historical Data

The historical data trend for Pinterest'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.

Pinterest Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Owner Earnings per Share (TTM)
Premium Member Only - - - - -0.05

Pinterest Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 - - 0.15 -0.05 -0.35

Competitive Comparison

For the Internet Content & Information subindustry, Pinterest'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.

   

Pinterest Owner Earnings per Share (TTM) Distribution

For the Interactive Media industry and Communication Services sector, Pinterest's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Pinterest's Owner Earnings per Share (TTM) falls in comparison to its industry or sector. The grey bar indicates the Owner Earnings per Share (TTM)'s extreme value range as defined by GuruFocus.



Pinterest 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)

Pinterest's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income -299
Depreciation, Depletion and Amortization 45
Change In Deferred Tax 0
5Y Average of Maintenance Capital Expenditure 18
Change In Working Capital 31
Shares Outstanding (Diluted Average) 681

1. Start with "Net Income" from income statement. Pinterest's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was $-299 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Pinterest's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Mar. 2023 was $45 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. Pinterest's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2023 was $0 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $18 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.

Pinterest's 5-Year Average Maintenance Capital Expenditure = $18 Mil

5. "Change In Working Capital" is from cashflow statement. Pinterest's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2023 was $31 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. Pinterest's Shares Outstanding (Diluted Average) for the months ended in Mar. 2023 was 681.140 Mil.

Pinterest's Onwer Earnings Per Share for Mar. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( -299.345 +45.481+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-17.810672410889+31.408)/681.140
=-0.35

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=23.47/-0.35
=0

* 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.


Pinterest Owner Earnings per Share (TTM) Related Terms

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


Pinterest (NYSE:PINS) Business Description

Pinterest logo
Traded in Other Exchanges
Address
505 Brannan Street, San Francisco, CA, USA, 94107
Pinterest is an online product and idea discovery platform that helps users gather ideas on everything from recipes to cook to destinations to travel to. Founded in 2010, the platform consists of a largely female audience, at roughly two thirds of its more than 365 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features.
Executives
Marc Steinberg director 600 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
Wanjiku Juanita Walcott officer: Chief Legal Officer 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
William J Ready director, officer: Chief Executive Officer C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Andrea Acosta officer: Chief Accounting Officer C/O BIOMARIN PHARMACEUTICAL INC., 770 LINDARO ST, SAN RAFAEL CA 94901
Naveen Gavini officer: SVP, Products 505 BRANNAN ST., SAN FRANCISCO CA 94107
Salaam Coleman director 505 BRANNAN ST., SAN FRANCISCO CA 94701
Andrea M Wishom director 651 BRANNAN ST., SAN FRANCISCO CA 94107
L Michelle Wilson director PO BOX 81226, SEATTLE WA 98108-1226
Jeremy S. Levine director C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, LARCHMONT NY 10538
Fredric G Reynolds director CBS CORPORATION, 51 WEST 52ND STREET, NEW YORK NY 10019
Leslie J Kilgore director 121 ALBRIGHT WAY, LOS GATOS CA 95032
Gokul Rajaram director 301 CONGRESS AVENUE, SUITE 700, AUSTIN TX 78701
Jeffrey D Jordan director 2865 SAND HILL ROAD #101, MENLO PARK CA 94025
Evan Sharp director, officer: Co-Founder & Chief Design & Cr 505 BRANNAN STREET, SAN FRANCISCO CA 94107
Benjamin Silbermann director, 10 percent owner, officer: Chairman, President, CEO, Co-F 505 BRANNAN STREET, SAN FRANCISCO CA 94107

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