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AAA Technologies (BOM:543671) Earnings Power Value (EPV) : ₹18.06 (As of Sep24)


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What is AAA Technologies Earnings Power Value (EPV)?

As of Sep24, AAA Technologies's earnings power value is ₹18.06. *

* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.

Margin of Safety is -530.92

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.


AAA Technologies Earnings Power Value (EPV) Historical Data

The historical data trend for AAA Technologies'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.

AAA Technologies Earnings Power Value (EPV) Chart

AAA Technologies Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Earnings Power Value (EPV)
Get a 7-Day Free Trial - - - 33.93 -

AAA Technologies Quarterly Data
Mar18 Mar19 Mar20 Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Earnings Power Value (EPV) Get a 7-Day Free Trial 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 - - - - -

Competitive Comparison of AAA Technologies's Earnings Power Value (EPV)

For the Information Technology Services subindustry, AAA Technologies'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.


AAA Technologies's Earnings Power Value (EPV) Distribution in the Software Industry

For the Software industry and Technology sector, AAA Technologies's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where AAA Technologies's Earnings Power Value (EPV) falls into.



AAA Technologies 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.


AAA Technologies  (BOM:543671) 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.


AAA Technologies Earnings Power Value (EPV) Related Terms

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AAA Technologies Business Description

Traded in Other Exchanges
Address
Saki Vihar Road, 278-280, F Wing, Solaris-1, Opposite L&T Gate No. 6, Powai, Andheri (East), Mumbai, MH, IND, 400072
AAA Technologies Ltd is an IT and Information Security Auditing & Consulting company. It offers auditing services such as Information Systems Audit, Information Security, Cyber Security, IT Assurance and Compliance and IT Governance.

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