* 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.
La Francaise de l'Energie (OTCPK:FDENF) 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.
La Francaise de l'Energie Earnings Power Value (EPV) Related Terms
La Francaise de l'Energie Earnings Power Value (EPV) Historical Data
* Premium members only.
The historical data trend for La Francaise de l'Energie'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.
La Francaise de l'Energie Earnings Power Value (EPV) Chart
FDENF vs COP, EOG, OXY: Earnings Power Value (EPV) Comparison
For the Oil & Gas E&P subindustry, La Francaise de l'Energie'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.
La Francaise de l'Energie Earnings Power Value (EPV) vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, La Francaise de l'Energie's Earnings Power Value (EPV) distribution charts can be found below:
* The bar in red indicates where La Francaise de l'Energie's Earnings Power Value (EPV) falls into.
La Francaise de l'Energie 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.
La Francaise de l'Energie's "Earning Power" Calculation:
Average of Last 5 Years
Last Year
Revenue
30.29
DDA
4.75
Operating Margin %
34.76
SGA * 25%
1.12
Tax Rate %
21.60
Maintenance Capex
14.75
Cash and Cash Equivalents
72.17
Short-Term Debt
4.35
Long-Term Debt
139.87
Shares Outstanding (Diluted)
5.33
1. Start with "Earnings" not including accounting adjustments (one-time charges not excluded unless policy has changed). "Earnings" are "Operating Income.
2. Look at average margins over a business/Industry cycle: Average Operating Margin = 34.76%
To normalize margins and eliminate the effects on profitability of valuing the firm at different points in the business cycle, it is usually best to take a long-term average of operating margins. Ideally this would be as long as 10 years and include at least one economic downturn. However, since most of companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year margin.
3. Multiply average margins by sustainable revenues and then adjust for maintenance SGA. This yields "normalized" EBIT:
To be conservative, GuruFocus uses an average of the 5 year revenues as the sustainable revenue.
EPV analysis recognises that part of SG&A expenditure is made to maintain and replace the existing assets, while part is made to grow sales. Since EPV is only interested in what it costs a going concern to maintain its existing asset base, it adds back a percentage of SG&A (between 15% and 50% - this is a matter of judgment and industry knowledge) to make up for the fact that some of this expenditure went to fund growth and shouldn't be accounted for. To start off, we assume 25% for the sake of prudence.
Sustainable Revenue = $30.29 Mil, Average Operating Margin = 34.76%, Average Adjusted SGA = 1.12,
therefore "Normalized" EBIT = Sustainable Revenue * Average Operating Margin + Average Adjusted SGA = 30.29 * 34.76% +1.12 = $11.647599332 Mil.
4. Multiply by one minus Average Tax Rate (NOPAT):
Same as average operating margin calculation, GuruFocus takes an average of the 5 years tax rates.
Average Tax Rate = 21.60%, and "Normalized" EBIT = $11.647599332 Mil,
therefore After-tax "Normalized" EBIT = "Normalized" EBIT * ( 1 - Average Tax Rate ) = 11.647599332 * ( 1 - 21.60% ) = $9.131717876288 Mil.
5. Add back Excess Depreciation (after tax at 1/2 average tax rate). This yields "normalized" Earnings:
Excess Depreciation = Average DDA * % of Excess Depreciation (after tax at 1/2 average tax rate) = 4.75 * 0.5 * 21.60% = $0.5125032 Mil.
"Normalized" Earnings = After-tax "Normalized" EBIT + Excess Depreciation = 9.131717876288 + 0.5125032 = $9.644221076288 Mil.
6. Adjusted for Maintenance Capital Expenditure:
First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Third, calculate Capital Expenditure (positive) - percentage of Net PPE as of corresponding Revenue * revenue increase.
If [Capital Expenditure (positive) - percentage of Net PPE as of corresponding Revenue * revenue increase] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - percentage of Net PPE as of corresponding Revenue * revenue increase] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - percentage of Net PPE as of corresponding Revenue * revenue increase.
Fourth, GuruFocus uses an average of the 5 year maintenance capital expenditures as maintenance CAPEX. La Francaise de l'Energie's Average Maintenance CAPEX = $14.75 Mil *.
* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.
7. Investors require a return of "WACC" for the risk they are taking: WACC = 9%
* 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.
* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.
What does a Earnings Power Value (EPV) of $-24.17 mean?
La Francaise de l'Energie (FDENF) has a Earnings Power Value (EPV) of $-24.17 as of Jun25. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on La Francaise de l'Energie and its competitors.
Is La Francaise de l'Energie's Earnings Power Value (EPV) too high?
La Francaise de l'Energie's current Earnings Power Value (EPV) is $-24.17. Overall, La Francaise de l'Energie has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does La Francaise de l'Energie's Earnings Power Value (EPV) compare to COP and EOG?
La Francaise de l'Energie's Earnings Power Value (EPV) of $-24.17 can be compared against companies in the Oil & Gas 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 an Oil & Gas company?
A good Earnings Power Value (EPV) depends on the Oil & Gas 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 La Francaise de l'Energie and its competitors. La Francaise de l'Energie's current Earnings Power Value (EPV) is $-24.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is La Francaise de l'Energie stock overvalued right now?
La Francaise de l'Energie (FDENF) has a current Earnings Power Value (EPV) of $-24.17. The stock's GF Value™ is $38.85, compared to a current price of $44.25 — trading 13.9% above its estimated fair value. The current Earnings Power Value (EPV) is $-24.17. La Francaise de l'Energie's overall GF Score™ is 85/100 with 8 warning signs to review. 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 La Francaise de l'Energie (FDENF), the current Earnings Power Value (EPV) is $-24.17 as of Jun25. 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.
Is La Francaise de l'Energie (FDENF) Overvalued in 2026?
Based on GuruFocus' analysis, La Francaise de l'Energie stock appears to be overvalued.
The current stock price of $44.25 is trading 13.9% above its estimated GF Value™ of $38.85.
Key valuation signals for FDENF:
Earnings Power Value (EPV): $-24.17
GF Value™: $38.85 vs. price of $44.25 (13.9% above fair value)
No single metric tells the full story. See the FDENF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
La Francaise de l'Energie is a France-based company engaged in the exploration, appraisal, and production of gas resources. The company focuses on coal bed methane gas resources. It operates Lorraine and Nord-Pas de Calais mining areas in France.
85GF Score
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