It’s Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

In this guest post, R. Srivatsan explains how to differentiate a good business from a bad one, using a stock valuation technique known as Earnings Power Box, introduced by Hewitt Heiserman, Jr, in his book,  “It’s Earnings That Count: Finding Stocks with Earnings Power for Long-Term Profits”.  Following his suggestion, I have added this feature in the freefincal automated stock analyzer.

His post is in the form a presentation and I have converted each slide into an image. It is easy to read and understand. By the way, Last few tickets are also available for the 3rd New Delhi event to be held on April 23rd, 2017 (link below). 

=-=-=-=-=-=-=

0001 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0002 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0003 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0004 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0005 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0006 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0007 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0008 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0009 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0010 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0011 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0012 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0013 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0014 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0015 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0016 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0017 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0018 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0019 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0020 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0021 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

0022 650x488 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

Srivatsan acknowledges his friend Mr. Punith Sacherla for his business insights, catchy title and suggestions on the draft presentation.

Details of the calculation can be found here. here.

Download the Automated Stock Analysis with the Earnings Power Box

Srivatsan has agreed to write another post with more example. Please join me in thanking him for a fine presentation. Do let me know what you think.

=-=-=-=-=-=-=

Kolkata DIY Investor Workshop May 28th 2017

Register for the Kolkata DIY Investor Workshop May 28th 2017

Last Few Tickets: New Delhi DIY Investor Workshop April 23rd, 2017

Register for the New Delhi DIY Investor Workshop April 23rd, 2017

You Can Be Rich Too With Goal-Based Investing

is my book with PV Subramanyam. If you have not yet got the book, check out the reviews below and use the links to buy.

Reader Quotes:

Gift it to your Friends and Relatives whom you care more. Already follower of Pattu and Subra’s forum. Ordered 4 more copies to give gift to my friends and eagerly waiting to read

The best book ever on Financial Freedom Planning. Go get it now!

Your first investment should be buying this book

The (nine online) calculators are really awesome and will give you all possible insights

Thank you, readers, for your generous support and patronage.

You can be rich too - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

Amazon Hardcover Rs. 317. 21% OFF

Kindle at Amazon.in (Rs. 307)

Google Play Store (Rs. 307)

Infibeam Now just Rs. 315 23% OFF.

If you use a mobikwik wallet, and purchase via infibeam, you can get up to 100% cashback!!

Bookadda Rs. 344. Flipkart Rs. 359

Amazon.com ($ 3.70 or Rs. 267)

 

  • Ask the right questions about money
  • get simple solutions
  • Define your goals clearly with worksheets
  • Calculate the correct asset allocation for each goal.
  • Find out how much insurance cover you need, and how much you need to invest with nine online calculator modules
  • Learn to choose mutual funds qualitatively and quantitatively.

More information is available here: A Beginner’s Guide To Make Your Money Dreams Come True!

What Readers Say


Reviews 4 650x685 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

reviews 650x462 - It's Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

Create a "from start to finish" financial plan with this free robo advisory software template


Free Apps for your Android Phone

Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

About Freefincal

Freefincal has open-source, comprehensive Excel spreadsheets, tools, analysis and unbiased, conflict of interest-free commentary on different aspects of personal finance and investing. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. We do not accept sponsored posts, links or guest posts request from content writers and agencies.

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

7 thoughts on “It’s Earnings That Count: Forget the next Infy; Can you identify the next Satyam?

  1. This article is great. If we strictly follow this, most of the so called blue chip Infra/Capital goods/Engg/Commodity stocks will fail miserably. I await the stock analyser for this concept which he has proposed to put it up tomorrow.

  2. Dear Professor/Guru,
    Thanks to you and special thanks to Mr.R.Srivatsan and Mr. Punith Sacherla for providing one more direction to analyse the buisness.

    Thanks for valuable time spent.

    Regards
    Jig

  3. Hello Sir, Great article and very easy to understand. I have one query, cant we use Cash Flow From Operation instead of Net profit as net profit is accounting number while real cash is in cash flow from operation. Please help me with the doubt.

Do let us know what you think about the article