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Verisk Analytics (Verisk Analytics) Owner Earnings per Share (TTM) : 4.41 (As of Dec. 2023)


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What is Verisk Analytics Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Verisk Analytics's Owner Earnings per Share (TTM) ended in Dec. 2023 was $4.41. It's Price-to-Owner-Earnings ratio for today is 50.15.


The historical rank and industry rank for Verisk Analytics's Owner Earnings per Share (TTM) or its related term are showing as below:

VRSK' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 16.71   Med: 30.38   Max: 150.68
Current: 50.14


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Verisk Analytics was 150.68. The lowest was 16.71. And the median was 30.38.


VRSK's Price-to-Owner-Earnings is ranked worse than
88.97% of 526 companies
in the Business Services industry
Industry Median: 12.765 vs VRSK: 50.14

Verisk Analytics's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $1.19. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $4.20. It's PE Ratio ratio for today is 52.65.

Verisk Analytics's EPS without NRI for the three months ended in Dec. 2023 was $1.16. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $5.39. It's PE Ratio without NRI ratio for today is 41.01.


Verisk Analytics Owner Earnings per Share (TTM) Historical Data

The historical data trend for Verisk Analytics's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Verisk Analytics Owner Earnings per Share (TTM) Chart

Verisk Analytics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.34 5.04 4.48 4.93 4.41

Verisk Analytics Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.93 1.49 2.21 2.02 4.41

Competitive Comparison of Verisk Analytics's Owner Earnings per Share (TTM)

For the Consulting Services subindustry, Verisk Analytics's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Verisk Analytics's Price-to-Owner-Earnings Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Verisk Analytics's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Verisk Analytics's Price-to-Owner-Earnings falls into.



Verisk Analytics Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Verisk Analytics's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 615
Depreciation, Depletion and Amortization 281
Change In Deferred Tax 53
5Y Average of Maintenance Capital Expenditure 235
Change In Working Capital -73
Shares Outstanding (Diluted Average) 145

1. Start with "Net Income" from income statement. Verisk Analytics's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was $615 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Verisk Analytics's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2023 was $281 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Verisk Analytics's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2023 was $53 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $235 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Verisk Analytics's 5-Year Average Maintenance Capital Expenditure = $235 Mil

5. "Change In Working Capital" is from cashflow statement. Verisk Analytics's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2023 was $-73 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Verisk Analytics's Shares Outstanding (Diluted Average) for the months ended in Dec. 2023 was 145.393 Mil.

Verisk Analytics's Onwer Earnings Per Share for Dec. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 614.5 +281.4+52.7
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-234.63961129824+-73.4)/145.393
=4.41

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=221.14/4.41
=50.15

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Verisk Analytics Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Verisk Analytics's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Verisk Analytics (Verisk Analytics) Business Description

Address
545 Washington Boulevard, Jersey City, NJ, USA, 07310-1686
Verisk Analytics is the leading provider of statistical, actuarial, and underwriting data for the United States' property and casualty insurance industry. Verisk leverages a vast contributory database and proprietary data assets to develop analytical tools helping insurance providers to better assess and price risk, achieve operational efficiency and optimize claim settlement processes. While Verisk also offers tools to quantify costs after loss events occur and to detect fraudulent activity, it is expanding into adjacent markets of life insurance, marketing, and non-U.S. operations.
Executives
Nicholas Daffan officer: Chief Information Officer C/O VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310
Therese M Vaughan director VALIDUS HOLDINGS, THE CHARTIS BUILDING / 29 RICHMOND ROAD, PEMBROKE D0 HM 08
Samuel G Liss director VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310
Bruce Edward Hansen director 17732 VINEYARD LANE, POWAY CA 92064
Wendy E Lane director
David J. Grover officer: Chief Accounting Officer C/O VERISK ANALYSIS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310
Christopher M Foskett director C/O VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310-1686
David B Wright director C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Kathy Card Beckles officer: EVP, Gen Counsel and Corp Sec C/O VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 073I0
Elizabeth Mann officer: Chief Financial Officer C/O VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310
Olumide Soroye director 6920 SEAWAY BLVD., EVERETT WA 98203
Lee Shavel officer: EVP and CFO ONE LIBERTY PLAZA, NEW YORK NY 10006
Jeffrey J Dailey director 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310
Kimberly S Stevenson director 199 FREMONT STREET, 7TH FLOOR, SAN FRANCISCO CA 94105
Scott G Stephenson officer: EVP & COO C/O VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310-1686