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Forrester Research (Forrester Research) Owner Earnings per Share (TTM) : -0.71 (As of Mar. 2024)


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What is Forrester Research Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Forrester Research's Owner Earnings per Share (TTM) ended in Mar. 2024 was $-0.71. It's Price-to-Owner-Earnings ratio for today is 0.


The historical rank and industry rank for Forrester Research's Owner Earnings per Share (TTM) or its related term are showing as below:


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Forrester Research was 217.23. The lowest was 11.10. And the median was 27.22.


FORR's Price-to-Owner-Earnings is not ranked *
in the Business Services industry.
Industry Median: 12.43
* Ranked among companies with meaningful Price-to-Owner-Earnings only.

Forrester Research's Earnings per Share (Diluted) for the three months ended in Mar. 2024 was $-0.35. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $0.03. It's PE Ratio ratio for today is 610.00.

Forrester Research's EPS without NRI for the three months ended in Mar. 2024 was $-0.09. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was $1.54. It's PE Ratio without NRI ratio for today is 11.88.


Forrester Research Owner Earnings per Share (TTM) Historical Data

The historical data trend for Forrester Research's Owner Earnings per Share (TTM) 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.

* Premium members only.

Forrester Research Owner Earnings per Share (TTM) Chart

Forrester Research Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.62 1.62 4.54 0.88 -0.06

Forrester Research Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Owner Earnings per Share (TTM) 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 Premium Member Only 0.34 -0.15 -0.64 -0.06 -0.71

Competitive Comparison of Forrester Research's Owner Earnings per Share (TTM)

For the Consulting Services subindustry, Forrester Research's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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.


Forrester Research's Price-to-Owner-Earnings Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Forrester Research's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Forrester Research's Price-to-Owner-Earnings falls into.



Forrester Research Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Forrester Research's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 0.5
Depreciation, Depletion and Amortization 34.3
Change In Deferred Tax -3.9
5Y Average of Maintenance Capital Expenditure 6.3
Change In Working Capital -38.2
Shares Outstanding (Diluted Average) 19.3

1. Start with "Net Income" from income statement. Forrester Research's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was $0.5 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Forrester Research's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Mar. 2024 was $34.3 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Forrester Research's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2024 was $-3.9 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $6.3 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many 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 maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Forrester Research's 5-Year Average Maintenance Capital Expenditure = $6.3 Mil

5. "Change In Working Capital" is from cashflow statement. Forrester Research's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2024 was $-38.2 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Forrester Research's Shares Outstanding (Diluted Average) for the months ended in Mar. 2024 was 19.285 Mil.

Forrester Research's Onwer Earnings Per Share for Mar. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 0.452 +34.263+-3.902
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-6.3098658760371+-38.217)/19.285
=-0.71

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=18.30/-0.71
=0

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Forrester Research Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Forrester Research's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Forrester Research (Forrester Research) Business Description

Traded in Other Exchanges
Address
60 Acorn Park Drive, Cambridge, MA, USA, 02140
Forrester Research Inc is a United States-based company that provides independent research, data, and advisory services. It operates through the following segments: The Research segment develops and delivers research, connect, and analytics products; The consulting segment includes the revenues and the related costs of the company's consulting organization, and the Events segment is engaged in developing and hosting in-person and virtual events.
Executives
Steven P. Peltzman officer: CBTO C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Scott Chouinard officer: Chief Accounting Officer C/O FORRESTER RESEARCH, INC., 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Carrie Johnson officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Ryan Darrah officer: Chief Legal Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Anthony J Friscia director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Robert Galford director C/O FORRESTER RESEARCH, 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Alicia Lee officer: Chief Consulting Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Kelley Hippler officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DR., CAMBRIDGE MA 02140
David Boyce director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Roy Sarah Le officer: Chief People Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Warren N Romine director 7325 16TH STREET NW, WASHINGTON DC 20012
Sharyn Leaver officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Nathaniel Swan officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
George F Colony director, 10 percent owner, officer: Chairman & CEO C/O FORRESTER RESEARCH INC, 1033 MASSACHUSETTS AVE, CAMBRIDGE MA 02138
Gretchen Teichgraeber director C/O FORRESTER RESEARCH, 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139