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As of Dec18, Estre Ambiental's earnings power value is $-8.52. *
* 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.
Estre Ambiental (OTCPK:ESTRF) 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.
Estre Ambiental Earnings Power Value (EPV) Related Terms
Estre Ambiental Earnings Power Value (EPV) Historical Data
* Premium members only.
The historical data trend for Estre Ambiental'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.
ESTRF vs OCLN, HDII, CWSS: Earnings Power Value (EPV) Comparison
For the Waste Management subindustry, Estre Ambiental'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.
Estre Ambiental Earnings Power Value (EPV) vs Waste Management Industry
For the Waste Management industry and Industrials sector, Estre Ambiental's Earnings Power Value (EPV) distribution charts can be found below:
* The bar in red indicates where Estre Ambiental's Earnings Power Value (EPV) falls into.
Estre Ambiental 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 $-8.52 mean?
Estre Ambiental (ESTRF) has a Earnings Power Value (EPV) of $-8.52 as of Dec18. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Estre Ambiental and its competitors.
Is Estre Ambiental's Earnings Power Value (EPV) too high?
Estre Ambiental's current Earnings Power Value (EPV) is $-8.52.
How does Estre Ambiental's Earnings Power Value (EPV) compare to OCLN and HDII?
Estre Ambiental's Earnings Power Value (EPV) of $-8.52 can be compared against companies in the Waste Management 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 Waste Management company?
A good Earnings Power Value (EPV) depends on the Waste Management 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 Estre Ambiental and its competitors. Estre Ambiental's current Earnings Power Value (EPV) is $-8.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Estre Ambiental stock overvalued right now?
Estre Ambiental (ESTRF) has a current Earnings Power Value (EPV) of $-8.52. The current Earnings Power Value (EPV) is $-8.52. 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 Estre Ambiental (ESTRF), the current Earnings Power Value (EPV) is $-8.52 as of Dec18. 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.
Estre Ambiental Inc waste management company in Brazil which operates in the Southeast, South and Northeast regions of Brazil. It operates its own landfills and is engaged in the final treatment of hazardous wastes, temporary storage of waste, collection and burning of landfill biogas, environmental consulting services, recycling, reverse manufacturing of electrical and electronic devices and waste collection, among others activities. The operations are grouped into four business segments Collection and Cleaning Services; Landfills; Oil and Gas; and Value Recovery. It generates a vast majority of its revenue from the collection and cleaning services segment.
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