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* 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.
China Regenerative Medicine International (HKSE:08158) 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.
China Regenerative Medicine International Earnings Power Value (EPV) Related Terms
China Regenerative Medicine International Earnings Power Value (EPV) Historical Data
* 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.
China Regenerative Medicine International Earnings Power Value (EPV) Chart
China Regenerative Medicine International Annual Data
HKSE:08158 vs VRTX, REGN, RVMD: Earnings Power Value (EPV) Comparison
For the Biotechnology subindustry, China Regenerative Medicine International'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.
China Regenerative Medicine International Earnings Power Value (EPV) vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, China Regenerative Medicine International's Earnings Power Value (EPV) distribution charts can be found below:
* The bar in red indicates where China Regenerative Medicine International's Earnings Power Value (EPV) falls into.
China Regenerative Medicine International 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.
China Regenerative Medicine International's "Earning Power" Calculation:
Average of Last 5 Years
Last Year
Revenue
111.32
DDA
7.52
Operating Margin %
-20.59
SGA * 25%
10.63
Tax Rate %
12.86
Maintenance Capex
0.82
Cash and Cash Equivalents
8.17
Short-Term Debt
12.09
Long-Term Debt
39.21
Shares Outstanding (Diluted)
304.25
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 = -20.59%
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 = HK$111.32 Mil, Average Operating Margin = -20.59%, Average Adjusted SGA = 10.63,
therefore "Normalized" EBIT = Sustainable Revenue * Average Operating Margin + Average Adjusted SGA = 111.32 * -20.59% +10.63 = HK$-12.291352484 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 = 12.86%, and "Normalized" EBIT = HK$-12.291352484 Mil,
therefore After-tax "Normalized" EBIT = "Normalized" EBIT * ( 1 - Average Tax Rate ) = -12.291352484 * ( 1 - 12.86% ) = HK$-10.710930381607 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) = 7.52 * 0.5 * 12.86% = HK$0.483486516 Mil.
"Normalized" Earnings = After-tax "Normalized" EBIT + Excess Depreciation = -10.710930381607 + 0.483486516 = HK$-10.227443865607 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. China Regenerative Medicine International's Average Maintenance CAPEX = HK$0.82 Mil *.
* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.
7. Investors require a return of "WACC" for the risk they are taking: WACC = 9%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.
What does a Earnings Power Value (EPV) of HK$-0.55 mean?
China Regenerative Medicine International (HKSE:08158) has a Earnings Power Value (EPV) of HK$-0.55 as of Dec25. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on China Regenerative Medicine International and its competitors.
Is China Regenerative Medicine International's Earnings Power Value (EPV) too high?
China Regenerative Medicine International's current Earnings Power Value (EPV) is HK$-0.55. Overall, China Regenerative Medicine International has a GF Score™ of 30/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Regenerative Medicine International's Earnings Power Value (EPV) compare to VRTX and REGN?
China Regenerative Medicine International's Earnings Power Value (EPV) of HK$-0.55 can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Power Value (EPV) for a Biotechnology company?
A good Earnings Power Value (EPV) depends on the Biotechnology industry context. However, Earnings Power Value (EPV) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Power Value (EPV) mean?
A high Earnings Power Value (EPV) can signal that a stock is expensive relative to its fundamentals. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on China Regenerative Medicine International and its competitors. China Regenerative Medicine International's current Earnings Power Value (EPV) is HK$-0.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Regenerative Medicine International stock overvalued right now?
Based on GuruFocus' analysis, China Regenerative Medicine International (HKSE:08158) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.63, compared to a current price of HK$0.23 — trading 63.2% below its estimated fair value. The current Earnings Power Value (EPV) is HK$-0.55. China Regenerative Medicine International's overall GF Score™ is 30/100 with 5 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 China Regenerative Medicine International (HKSE:08158), the current Earnings Power Value (EPV) is HK$-0.55 as of Dec25. 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 China Regenerative Medicine International (HKSE:08158) Overvalued in 2026?
Based on GuruFocus' analysis, China Regenerative Medicine International stock appears to be undervalued.
The current stock price of HK$0.23 is trading 63.2% below its estimated GF Value™ of HK$0.63.
GuruFocus considers China Regenerative Medicine International to be Possible Value Trap.
Key valuation signals for HKSE:08158:
Earnings Power Value (EPV): HK$-0.55
GF Value™: HK$0.63 vs. price of HK$0.23 (63.2% below fair value)
No single metric tells the full story. See the HKSE:08158 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Regenerative Medicine International Ltd is an investment holding company. The company is engaged in the provision of healthcare products and services. It is engaged in research and development, production and sales of tissue engineering and regenerative medicine products. The business scope of company includes tissue engineering, cosmetics, cell storage, preparation and therapy, hospitals administration and other business division. The segments of the company are Aesthetic medical and beauty services and Medical services. The majority of the company's revenue is derived from its Aesthetic medical and beauty services segment that provides medical beauty products and services. Geographically, the Hong Kong accounts for the majority of the revenue and also has a presence in PRC.
30GF Score
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Earnings Power Value (EPV) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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