OTG (Otg Exp) Earnings Power Value (EPV): $-5.22 (As of Dec14)


What is Otg Exp Earnings Power Value (EPV)?

Otg Exp OTG Earnings Power Value (EPV) is $-5.22 as of Dec14.

As of Dec14, Otg Exp's earnings power value is $-5.22. *

* 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.

Otg Exp  (NAS:OTG) 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.

Otg Exp Earnings Power Value (EPV) Related Terms

Otg Exp Earnings Power Value (EPV) Historical Data

* Premium members only.

The historical data trend for Otg Exp'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.

Otg Exp Earnings Power Value (EPV) Chart

Otg Exp Annual Data
Trend Dec13 Dec14
Earnings Power Value (EPV)
0.00 0.00

Otg Exp Semi-Annual Data
Dec13 Dec14
Earnings Power Value (EPV) 0.00 0.00

OTG vs IRGTQ, CDIF, STRZ: Earnings Power Value (EPV) Comparison

For the Restaurants subindustry, Otg Exp'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.

Otg Exp Earnings Power Value (EPV) vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Otg Exp's Earnings Power Value (EPV) distribution charts can be found below:

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


Otg Exp 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 $-5.22 mean?
Otg Exp (OTG) has a Earnings Power Value (EPV) of $-5.22 as of Dec14. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Otg Exp and its competitors.
Is Otg Exp's Earnings Power Value (EPV) too high?
Otg Exp's current Earnings Power Value (EPV) is $-5.22.
How does Otg Exp's Earnings Power Value (EPV) compare to IRGTQ and CDIF?
Otg Exp's Earnings Power Value (EPV) of $-5.22 can be compared against companies in the Restaurants 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 Restaurants company?
A good Earnings Power Value (EPV) depends on the Restaurants 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 Otg Exp and its competitors. Otg Exp's current Earnings Power Value (EPV) is $-5.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otg Exp stock overvalued right now?
Otg Exp (OTG) has a current Earnings Power Value (EPV) of $-5.22. The current Earnings Power Value (EPV) is $-5.22. 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 Otg Exp (OTG), the current Earnings Power Value (EPV) is $-5.22 as of Dec14. 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.

Otg Exp Business Description

Otg Exp Inc was incorporated on October 27, 2015 in Delaware. It is a travel restaurateur with operations in North America with more than 220 locations in 23 terminals across 10 airports. The Company designs, develops, operates and manages the terminal concessions programs, which refers to the programs where it either operates all of the F&B concessions or F&B and N&G concessions or have management authority over the concession program or terminal. The Company operates in the United States and Canada. It has relationships with manufacturers that deliver products directly to its concession locations. OTG's customers are comprised of two distinct groups. The first group includes airlines, such as United, Delta and JetBlue, airport operators and concession program managers. The other commercial enterprises include car rental companies, hotel chains and online shopping sites. The second group consists of the airport users, which include passengers, airline and airport employees. It competes with concession program companies, such as HMSHost Corporation, SSP Group and Hudson Group, as well as other regional and local concessionaires. The Company is subject to federal, state and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes. Failure to obtain or retain food service, health permit or other licenses and approvals would adversely affect its operations.