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As of Jul24, Silver Bull Resources's earnings power value is $-0.03. *
* 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.
The historical data trend for Silver Bull Resources'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.
Silver Bull Resources Annual Data | |||||||||||||||||||||
Trend | Oct14 | Oct15 | Oct16 | Oct17 | Oct18 | Oct19 | Oct20 | Oct21 | Oct22 | Oct23 | |||||||||||
Earnings Power Value (EPV) | Get a 7-Day Free Trial | 0.01 | 0.02 | -0.01 | -0.02 | -0.02 |
Silver Bull Resources Quarterly Data | ||||||||||||||||||||
Oct19 | Jan20 | Apr20 | Jul20 | Oct20 | Jan21 | Apr21 | Jul21 | Oct21 | Jan22 | Apr22 | Jul22 | Oct22 | Jan23 | Apr23 | Jul23 | Oct23 | Jan24 | Apr24 | Jul24 | |
Earnings Power Value (EPV) | Get a 7-Day Free Trial | -0.04 | -0.02 | -0.03 | -0.03 | -0.03 |
For the Other Industrial Metals & Mining subindustry, Silver Bull Resources'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.
For the Metals & Mining industry and Basic Materials sector, Silver Bull Resources's Earnings Power Value (EPV) distribution charts can be found below:
* The bar in red indicates where Silver Bull Resources's Earnings Power Value (EPV) falls into.
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.
Silver Bull Resources's "Earning Power" Calculation:
Average of Last 20 Quarters | Last Quarter | |
Revenue | 0.00 | |
DDA | 0.03 | |
Operating Margin % | 0.00 | |
SGA * 25% | 0.35 | |
Tax Rate % | 0.10 | |
Maintenance Capex | 0.16 | |
Cash and Cash Equivalents | 0.30 | |
Short-Term Debt | 0.00 | |
Long-Term Debt | 0.00 | |
Shares Outstanding (Diluted) | 47.37 |
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 = 0.00%
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 = $0.00 Mil, Average Operating Margin = 0.00%, Average Adjusted SGA = 0.35,
therefore "Normalized" EBIT = Sustainable Revenue * Average Operating Margin + Average Adjusted SGA = 0.00 * 0.00% +0.35 = $ 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 = 0.10%, and "Normalized" EBIT = $ Mil,
therefore After-tax "Normalized" EBIT = "Normalized" EBIT * ( 1 - Average Tax Rate ) = * ( 1 - 0.10% ) = $0 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) = 0.03 * 0.5 * 0.10% = $1.4586E-5 Mil.
"Normalized" Earnings = After-tax "Normalized" EBIT + Excess Depreciation = 0 + 1.4586E-5 = $1.4586E-5 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.
Silver Bull Resources's Average Maintenance CAPEX = $0.16 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%
8. Silver Bull Resources's current cash and cash equivalent = $0.30 Mil.
Silver Bull Resources's current interest bearing debt = Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation = 0.00 + 0.00 = $0 Mil.
Silver Bull Resources's current Shares Outstanding (Diluted Average) = 47.37 Mil.
Silver Bull Resources's Earnings Power Value (EPV) for Jul24 is calculated as:
EPV | = | ( ( Norm. Earnings | - | Maint. CAPEX *) | / | WACC | + | CashandEquiv | - | Int. Bearing Debt ) | / | Shares Outstanding (Diluted Average) |
= | ( ( 1.4586E-5 | - | 0.16) | / | 9% | + | 0.30 | - | 0 ) | / | 47.37 | |
= | -0.03 |
Margin of Safety (EPV) | = | ( Earnings Power Value (EPV) | - | Current Price ) | / | Earnings Power Value (EPV) |
= | ( -0.032049574706658 | - | 0.0899 ) | / | -0.032049574706658 | |
= | N/A |
* 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.
Silver Bull Resources (OTCPK:SVBL) 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.
Thank you for viewing the detailed overview of Silver Bull Resources's Earnings Power Value (EPV) provided by GuruFocus.com. Please click on the following links to see related term pages.
William Fuller Matlack | director | C/O TIMBERLINE RESOURCES CORP., 101 EAST LAKESIDE AVENUE, COEUR D'ALENE ID 83814 |
David T. Underwood | director | 777 DUNSMUIR STREET, SUITE 1610, VANCOUVER A1 V7Y 1K4 |
Darren Klinck | officer: President | 918 WEST 13TH AVENUE, VANCOUVER A1 V5Z 1P3 |
Christopher Richards | officer: CFO | 918 WEST 13TH AVENUE, VANCOUVER A1 V5Z 1P3 |
Brian D. Edgar | director, officer: Executive Chairman | 885 WEST GEORGIA STREET, SUITE 2200, VANCOUVER A1 V6C 3E8 |
Joshua Crumb | director | 885 WEST GEORGE STREET, SUITE 2200, VANCOUVER A1 V6C 3E8 |
John A Mcclintock | director | C/O SILVER BULL RESOURCES, INC., 777 DUNSMUIR STREET, SUITE 1610, VANCOUVER A1 V7Y 1K4 |
Coeur D Alene Mines Corp | 10 percent owner | 200 SOUTH WACKER DRIVE, SUITE 2100, CHICAGO IL 60606 |
Lazarus Investment Partners Lllp | 10 percent owner | C/O IBEX INVESTORS LLC, 260 NORTH JOSEPHINE STREET, SUITE 300, DENVER CO 80206 |
Justin B Borus | 10 percent owner | 260 N. JOSEPHINE STREET, SUITE 300, DENVER CO 80206 |
Lazarus Management Co Llc | 10 percent owner | 260 N. JOSEPHINE STREET, SUITE 300, DENVER CO 80206 |
Jason Cunliffe | officer: Vice President - Exploration | 885 WEST GEORGIA STREET, SUITE 2200, VANCOUVER A1 V6C 3E8 |
Daniel J Kunz | director | C/O US GEOTHERMAL INC., 1505 TYRELL LANE, BOISE ID 83706 |
Sean Fallis | officer: Chief Financial Officer | 925 WEST GEORGIA STREET, SUITE 1908, VANCOUVER A1 V6C 3L2 |
Nicole Adshead-bell | director | 835 W. GEORGIA STREET, SUITE 2200, VANCOUVER A1 V6C3E8 |
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