Some people have stressed on referring to a few different metrics when analyzing a company. And they are rightly so. In this part 3 sequel of the posts, I will share on one of the earnings valuation methodology favored by Bruce Greenwald which is best used in conjunction with the Reproduction Cost value method discussed in the previous post. Just like how the balance sheet had to be adjusted in the Reproduction Cost method, the income statement had to be adjusted this time in the EPV (Earnings Power Value) method. The EPV method of valuing earnings are constantly being debated and compared against the more known DCF (Discounted Cash Flow) and DDM (Dividend Discount Model) used across tertiaries and research house. The biggest difference amongst the 3 valuation methodology, as you will see later, is that the latter two takes into account future potential growth and earnings optimism while the ......