Classic investor frameworks · Intrinsic value
Greenwald · Earnings Power Value (EPV)
Capitalizes sustainable current after-tax operating earnings without paying for unproven growth, providing a conservative anchor beyond DCF.
- Guide level
- Practical
- Output
- Intrinsic value
Core formula
EPV = normalized after-tax operating earnings / cost of capitalHow to interpret it
Capitalizes sustainable current after-tax operating earnings without paying for unproven growth, providing a conservative anchor beyond DCF.
The output should be read as a scenario or decision aid, not as a guaranteed price target. Compare it with at least one method based on different economic assumptions.
Practical workflow
- Normalize the latest public financial and operating data.
- Choose assumptions that match the company's economics and accounting structure.
- Calculate conservative, base and optimistic cases where the method permits.
- Compare the result with market pricing and an independent valuation method.
- Document the assumptions that drive the largest changes in value.
Key limitation
Normalization can be subjective and the framework deliberately gives no value to future growth.
How Stockinsky uses it
Stockinsky uses this framework only when the company type and available data support it. Professional valuations expose assumptions, sources and warnings instead of presenting false precision.