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Sazgar Engineering Works (KAR:SAZEW) Earnings Power Value (EPV) : ₨109.77 (As of Dec24)


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What is Sazgar Engineering Works Earnings Power Value (EPV)?

As of Dec24, Sazgar Engineering Works's earnings power value is ₨109.77. *

* 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.


Sazgar Engineering Works Earnings Power Value (EPV) Historical Data

The historical data trend for Sazgar Engineering Works'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.

* Premium members only.

Sazgar Engineering Works Earnings Power Value (EPV) Chart

Sazgar Engineering Works Annual Data
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Sazgar Engineering Works Quarterly Data
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Competitive Comparison of Sazgar Engineering Works's Earnings Power Value (EPV)

For the Auto Manufacturers subindustry, Sazgar Engineering Works'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.


Sazgar Engineering Works's Earnings Power Value (EPV) Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Sazgar Engineering Works's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where Sazgar Engineering Works's Earnings Power Value (EPV) falls into.


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Sazgar Engineering Works 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.


Sazgar Engineering Works  (KAR:SAZEW) 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.


Sazgar Engineering Works Earnings Power Value (EPV) Related Terms

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Sazgar Engineering Works Business Description

Traded in Other Exchanges
N/A
Address
88-Ali Town, Raiwind Road, Thokar Niaz Baig, Lahore, PB, PAK
Sazgar Engineering Works Ltd manufactures auto rickshaws, tractors wheel rims and home appliances. Its products include 3 Wheelers and Tractor Automotive Wheel Rims. The operating segments of the company are Automobiles-Three Wheeler, Automotive Parts, Household Appliances and Automobiles-Four Wheeler. Substantial amount of revenue for the company is generated from the Automobiles-Four Wheeler segment.

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