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    Columbia Business School Bruce Greenwald Protocol

    Earnings Power Value (EPV)

    Zero-growth valuation protocol quantifying sustainable operating cash flows, franchise moats, and reproduction costs.

    Select United States (S&P 500 / NASDAQ) Stock Preset:Moat Classification: WIDE MOAT

    Operating Inputs (M)

    AAPL
    Operating Income (EBIT):$ 122,000M
    Cost of Capital (WACC %):8.5%
    Corporate Tax Rate (%):21.0%
    Reproduction Cost of Assets:$ 280,000M
    Excess Cash & Equivalents:$ 65,000M
    Total Debt (Short + Long Term):$ 105,000M
    Equity EPV Per Share (Zero-Growth)
    $ 78.08
    Current Market Price: $ 225.00
    OVERVALUED
    -188.2% MOS
    The market price bakes in aggressive future growth assumptions that exceed current earnings power.
    Franchise Moat Index (EPV / Asset Value):4.38x
    WIDE MOAT
    Franchise Value: $ 946,854.09M

    Significant durable competitive advantage (pricing power, structural network effects, proprietary technology). Sustainable returns far exceed cost of capital.

    Columbia 3-Step Valuation Ladder

    1. Asset Value:
    $ 18.42
    Reproduction floor
    2. EPV (Zero Growth):
    $ 78.08
    Sustainable earning
    3. Current Price:
    $ 225.00
    Market quotation

    Methodological Reference: Columbia Business School EPV

    Pioneered by Professor Bruce Greenwald, Earnings Power Value (EPV) rejects speculative DCF terminal growth assumptions. If a company does not grow a single percentage point, what is the capitalized value of its normalized operating earnings discounted at its weighted average cost of capital (WACC)? If the resulting Operating EPV exceeds the reproduction cost of its physical and intangible assets, the enterprise possesses a defensible competitive moat earning economic rents.