tol1 Posted April 9, 2018 Share Posted April 9, 2018 Hey, Some of you may have come across the EPV method to derive an adjusted NAV and so called earnings power value. Greenwald is one of the advocates of the method. I like the concept, but still struggle with it from a practical point of view: 1. Reproduction value: heavily depends on assumptions, ideally done by appraisers 2. EPV: starts off with a 'sustainable' operating profit; simply taking historical averages can skew valuation results heavily and I rather understand how P&L drivers impact the profit in the next 2-3 years instead of relying on historical means What are your thoughts on those 2 points and if so, how do you apply the EPV method? Link to comment Share on other sites More sharing options...
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