Ventia Services Group (ASX:VNT) Earnings Power Value (EPV) : A$-0.63 (As of Dec23)

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What is Ventia Services Group Earnings Power Value (EPV)?

As of Dec23, Ventia Services Group's earnings power value is A$-0.63. *

* 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.

Ventia Services Group Earnings Power Value (EPV) Historical Data

The historical data trend for Ventia Services 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.

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Ventia Services Group Earnings Power Value (EPV) Chart

Ventia Services Group Annual Data

Trend

Dec21

Dec22

Dec23

Earnings Power Value (EPV)

Ventia Services Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Earnings Power Value (EPV)	Get a 7-Day Free Trial			-	-	-	-	-

Competitive Comparison of Ventia Services Group's Earnings Power Value (EPV)

For the Infrastructure Operations subindustry, Ventia Services 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.

Ventia Services Group's Earnings Power Value (EPV) Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ventia Services Group's Earnings Power Value (EPV) distribution charts can be found below:

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

Ventia Services 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.

Ventia Services Group (ASX:VNT) 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.

Ventia Services Group Earnings Power Value (EPV) Related Terms

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Ventia Services Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ventia Services Group Ltd (ASX:VNT) » Definitions » Earnings Power Value (EPV)

Traded in Other Exchanges

VNT:New Zealand

Address

80 Pacific Highway, Level 8, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ventia.com

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.