DCEL (Digicel Group) Earnings Power Value (EPV): $-18.80 (As of Mar15)


What is Digicel Group Earnings Power Value (EPV)?

Digicel Group DCEL Earnings Power Value (EPV) is $-18.80 as of Mar15.

As of Mar15, Digicel Group's earnings power value is $-18.80. *

* 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.

Digicel Group  (NYSE:DCEL) 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.

Digicel Group Earnings Power Value (EPV) Related Terms

Digicel Group Earnings Power Value (EPV) Historical Data

* Premium members only.

The historical data trend for Digicel 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.

Digicel Group Earnings Power Value (EPV) Chart

Digicel Group Annual Data
Trend Mar13 Mar14 Mar15
Earnings Power Value (EPV)
0.00 0.00 0.00

Digicel Group Semi-Annual Data
Mar13 Mar14 Mar15
Earnings Power Value (EPV) 0.00 0.00 0.00

DCEL vs DIRV, FULO, TOWTF: Earnings Power Value (EPV) Comparison

For the Telecom Services subindustry, Digicel 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.

Digicel Group Earnings Power Value (EPV) vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Digicel Group's Earnings Power Value (EPV) distribution charts can be found below:

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


Digicel 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.

What does a Earnings Power Value (EPV) of $-18.80 mean?
Digicel Group (DCEL) has a Earnings Power Value (EPV) of $-18.80 as of Mar15. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Digicel Group and its competitors.
Is Digicel Group's Earnings Power Value (EPV) too high?
Digicel Group's current Earnings Power Value (EPV) is $-18.80.
How does Digicel Group's Earnings Power Value (EPV) compare to DIRV and FULO?
Digicel Group's Earnings Power Value (EPV) of $-18.80 can be compared against companies in the Telecommunication Services 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 Telecommunication Services company?
A good Earnings Power Value (EPV) depends on the Telecommunication Services 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 Digicel Group and its competitors. Digicel Group's current Earnings Power Value (EPV) is $-18.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digicel Group stock overvalued right now?
Digicel Group (DCEL) has a current Earnings Power Value (EPV) of $-18.80. The current Earnings Power Value (EPV) is $-18.80. 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 Digicel Group (DCEL), the current Earnings Power Value (EPV) is $-18.80 as of Mar15. 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.

Digicel Group Business Description

Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.