MGTC (Megatech) Earnings Power Value (EPV): $-0.02 (As of Jun04)


What is Megatech Earnings Power Value (EPV)?

Megatech MGTC -42.86% Earnings Power Value (EPV) is $-0.02 as of Jun04.

As of Jun04, Megatech's earnings power value is $-0.02. *

* 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.

Megatech  (OTCPK:MGTC) 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.

Megatech Earnings Power Value (EPV) Related Terms

Megatech Earnings Power Value (EPV) Historical Data

* Premium members only.

The historical data trend for Megatech'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.

Megatech Earnings Power Value (EPV) Chart

Megatech Annual Data
Trend Dec99 Dec00 Dec01 Dec02 Dec03
Earnings Power Value (EPV)
0.00 0.00 0.00 0.00 0.00

Megatech Quarterly Data
Dec99 Mar00 Jun00 Sep00 Dec00 Mar01 Jun01 Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04
Earnings Power Value (EPV) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

MGTC vs NRBT, EVTN: Earnings Power Value (EPV) Comparison

For the Specialty Industrial Machinery subindustry, Megatech'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.

Megatech Earnings Power Value (EPV) vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Megatech's Earnings Power Value (EPV) distribution charts can be found below:

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


Megatech 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 $-0.02 mean?
Megatech (MGTC) has a Earnings Power Value (EPV) of $-0.02 as of Jun04. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Megatech and its competitors.
Is Megatech's Earnings Power Value (EPV) too high?
Megatech's current Earnings Power Value (EPV) is $-0.02.
How does Megatech's Earnings Power Value (EPV) compare to NRBT and EVTN?
Megatech's Earnings Power Value (EPV) of $-0.02 can be compared against companies in the Industrial Products 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 Industrial Products company?
A good Earnings Power Value (EPV) depends on the Industrial Products 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 Megatech and its competitors. Megatech's current Earnings Power Value (EPV) is $-0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megatech stock overvalued right now?
Megatech (MGTC) has a current Earnings Power Value (EPV) of $-0.02. The current Earnings Power Value (EPV) is $-0.02. 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 Megatech (MGTC), the current Earnings Power Value (EPV) is $-0.02 as of Jun04. 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.

Megatech Business Description

Address 525 Woburn Street, Suite 3, Tewksbury, MA, USA, 01876
Megatech Corp manufactures and develops oilless, multi-fueled engines and electric dynamometers. The company offers products in automotive, diesel, hybrid and alternative-fuel technologies. It also provides complete training programs for all areas of ASE certifications.