Therefore, many have a poor understanding of Berkshire's
true earnings power.
Plus, if record profit margins of the last few years prove unsustainable, then recent earnings figures may be overstating
the true earnings power for the index.
When you see firms talk about their non-GAAP earnings, this is what some are trying to approximate, showing
the true earnings power of the assets.
It's possible that Netflix can continue to bolster its free cash flow and show
the true earnings power of the company.
I very much disagree with him, I think the old Wall Street bulge bracket business model is cooked forever and is now in secular decline — there is simply no way to estimate what
their true earnings power is or will be next year combined with the opacity of their balance sheets.
Not exact matches
And if recent peak
earnings don't represent the
true current
earnings power of the index, the price to
earnings figures may be overstating the attractiveness of their valuations.
And, it is also an undeniable fact that a company (business) derives its
true value from its
earnings power, in other words, the amount of cash flow it is capable of generating on its shareholders» behalf.
Because nearly everything looks cheap on that bloody basis — EBITDA often has little connection to a company's
true cash flow or
earnings power.
As I explained on Investopedia, a «sucker yield» means that the dividend is «too good to be
true» so «when a company is paying a dividend beyond its
earnings power it is essentially eroding capital.»