CRMBQ (Crumbs Bake Shop) Earnings Power Value (EPV): $-1.11 (As of Mar14)


What is Crumbs Bake Shop Earnings Power Value (EPV)?

Crumbs Bake Shop CRMBQ -99.00% Earnings Power Value (EPV) is $-1.11 as of Mar14.

As of Mar14, Crumbs Bake Shop's earnings power value is $-1.11. *

* 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.

Crumbs Bake Shop  (OTCPK:CRMBQ) 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.

Crumbs Bake Shop Earnings Power Value (EPV) Related Terms

Crumbs Bake Shop Earnings Power Value (EPV) Historical Data

* Premium members only.

The historical data trend for Crumbs Bake Shop'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.

Crumbs Bake Shop Earnings Power Value (EPV) Chart

Crumbs Bake Shop Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13
Earnings Power Value (EPV)
0.00 0.00 0.00 0.00 -2.65

Crumbs Bake Shop Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14
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 Premium Member Only 0.00 0.00 0.00 -2.65 0.00

CRMBQ vs GLUC: Earnings Power Value (EPV) Comparison

For the Packaged Foods subindustry, Crumbs Bake Shop'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.

Crumbs Bake Shop Earnings Power Value (EPV) vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Crumbs Bake Shop's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where Crumbs Bake Shop's Earnings Power Value (EPV) falls into.


Crumbs Bake Shop 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.

What does a Earnings Power Value (EPV) of $-1.11 mean?
Crumbs Bake Shop (CRMBQ) has a Earnings Power Value (EPV) of $-1.11 as of Mar14. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Crumbs Bake Shop and its competitors.
Is Crumbs Bake Shop's Earnings Power Value (EPV) too high?
Crumbs Bake Shop's current Earnings Power Value (EPV) is $-1.11.
How does Crumbs Bake Shop's Earnings Power Value (EPV) compare to GLUC?
Crumbs Bake Shop's Earnings Power Value (EPV) of $-1.11 can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Power Value (EPV) for a Consumer Packaged Goods company?
A good Earnings Power Value (EPV) depends on the Consumer Packaged Goods industry context. However, Earnings Power Value (EPV) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Power Value (EPV) mean?
A high Earnings Power Value (EPV) can signal that a stock is expensive relative to its fundamentals. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Crumbs Bake Shop and its competitors. Crumbs Bake Shop's current Earnings Power Value (EPV) is $-1.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Crumbs Bake Shop stock overvalued right now?
Crumbs Bake Shop (CRMBQ) has a current Earnings Power Value (EPV) of $-1.11. The current Earnings Power Value (EPV) is $-1.11. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Power Value (EPV) calculated?
Earnings Power Value (EPV) is calculated from a company's financial statements. For Crumbs Bake Shop (CRMBQ), the current Earnings Power Value (EPV) is $-1.11 as of Mar14. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Crumbs Bake Shop Business Description

Address 110 West 40th Street, Suite 2100, New York, NY, USA, 10018
Crumbs Bake Shop Inc through its subsidiary is engaged in selling a wide variety of cupcakes, cakes, cookies and other baked goods as well as hot and cold beverages. It offers these products through its stores, e-commerce division, catering services and wholesale distribution business. Apart from cupcakes, the company also offers other baked goods, including cakes, cookies, pastries, scones, croissants, brownies, push-pops and muffins. The company also offers beverages such as drip coffees, espresso-based drinks, whole-leaf teas, and hot chocolate, as well as a variety of cold drinks.