Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.
Margin of Safety is
-533.72
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.
AR Advanced Technology (TSE:5578) 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.
AR Advanced Technology Earnings Power Value (EPV) Related Terms
AR Advanced Technology Earnings Power Value (EPV) Historical Data
* Premium members only.
The historical data trend for AR Advanced Technology'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.
AR Advanced Technology Earnings Power Value (EPV) Chart
TSE:5578 vs IBM, ACN, FISV: Earnings Power Value (EPV) Comparison
For the Information Technology Services subindustry, AR Advanced Technology'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.
AR Advanced Technology Earnings Power Value (EPV) vs Software Industry
For the Software industry and Technology sector, AR Advanced Technology's Earnings Power Value (EPV) distribution charts can be found below:
* The bar in red indicates where AR Advanced Technology's Earnings Power Value (EPV) falls into.
AR Advanced Technology 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 円134.92 mean?
AR Advanced Technology (TSE:5578) has a Earnings Power Value (EPV) of 円134.92 as of May26. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on AR Advanced Technology and its competitors.
Is AR Advanced Technology's Earnings Power Value (EPV) too high?
AR Advanced Technology's current Earnings Power Value (EPV) is 円134.92. Overall, AR Advanced Technology has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AR Advanced Technology's Earnings Power Value (EPV) compare to IBM and ACN?
AR Advanced Technology's Earnings Power Value (EPV) of 円134.92 can be compared against companies in the Software 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 Software company?
A good Earnings Power Value (EPV) depends on the Software 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 AR Advanced Technology and its competitors. AR Advanced Technology's current Earnings Power Value (EPV) is 円134.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AR Advanced Technology stock overvalued right now?
Based on GuruFocus' analysis, AR Advanced Technology (TSE:5578) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,151.10, compared to a current price of 円855.00 — trading 25.7% below its estimated fair value. The current Earnings Power Value (EPV) is 円134.92. AR Advanced Technology's overall GF Score™ is 57/100. 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 AR Advanced Technology (TSE:5578), the current Earnings Power Value (EPV) is 円134.92 as of May26. 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.
Is AR Advanced Technology (TSE:5578) Overvalued in 2026?
Based on GuruFocus' analysis, AR Advanced Technology stock appears to be undervalued.
The current stock price of 円855.00 is trading 25.7% below its estimated GF Value™ of 円1,151.10.
GuruFocus considers AR Advanced Technology to be Modestly Undervalued.
Key valuation signals for TSE:5578:
Earnings Power Value (EPV): 円134.92
GF Value™: 円1,151.10 vs. price of 円855.00 (25.7% below fair value)
No single metric tells the full story. See the TSE:5578 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AR Advanced Technology Inc is engaged in the DX solution business utilizing cloud technology, data analysis, and AI. It provides a comprehensive service that goes beyond simple system introduction. Its products and services include Loogue faq, an AI chatbot that is specialized in employee inquiries; Zidoma data which may be useful to reduce fileserver operating costs; and Mieta a cloud contact center analysis management service.
57GF Score
Get the complete analysis for TSE:5578
Earnings Power Value (EPV) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:5578 has been successfully added to your 
