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

Published on / By M. Pattabiraman Twitter: @pattufreefincal / 7 Comments

Published: April 14, 2017 at 9:46 am

Last Updated on December 19, 2021

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). 

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    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.

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    Kolkata DIY Investor Workshop May 28th 2017

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

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      Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
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