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PetroNor E&P ASA (OSTO:PNORO) Earnings Power Value (EPV) : kr7.51 (As of Sep24)


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What is PetroNor E&P ASA Earnings Power Value (EPV)?

As of Sep24, PetroNor E&P ASA's earnings power value is kr7.51. *

* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.

Margin of Safety is -36.12

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.


PetroNor E&P ASA Earnings Power Value (EPV) Historical Data

The historical data trend for PetroNor E&P ASA'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.

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PetroNor E&P ASA Earnings Power Value (EPV) Chart

PetroNor E&P ASA Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Power Value (EPV)
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PetroNor E&P ASA Quarterly Data
Dec18 Dec19 Jun20 Dec20 Mar21 Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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Competitive Comparison of PetroNor E&P ASA's Earnings Power Value (EPV)

For the Oil & Gas E&P subindustry, PetroNor E&P ASA'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.


PetroNor E&P ASA's Earnings Power Value (EPV) Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, PetroNor E&P ASA's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where PetroNor E&P ASA's Earnings Power Value (EPV) falls into.



PetroNor E&P ASA 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.


PetroNor E&P ASA  (OSTO:PNORo) 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.


PetroNor E&P ASA Earnings Power Value (EPV) Related Terms

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PetroNor E&P ASA Business Description

Industry
Traded in Other Exchanges
Address
Froyas gate 13, Oslo, NOR, 0273
PetroNor E&P ASA is an independent oil and gas exploration and production company. The principal activities of the group are the exploration and production of crude oil. The group only has one operating segment, being exploration and production of hydrocarbons.

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