EPS
WisdomTree U.S. LargeCap Fund
stock NYSE ETF

I’ll explain.
To preface, P/E can’t be used with CSU due to significant distortions in earnings from non-cash expenses/liabilities and amortization of acquisitions. The PE will always be artificially inflated due to many complicated accounting mechanisms, for instance, the IRGA liability relating to Topicus. Not a true accounting cash expense, but a liability that brings down bottom line earnings. I understand already deters many investors as it’s not simple to read the reports and just look at EPS.
The gold standard is free cash flow available to shareholders, basically CSU’s version of FCF. This FCF multiple is currently trading at a trailing ~17x and a forward estimate of ~14-15x. So, it’s actually quite inexpensive compared to historical multiples which have been as high as 30-35x pre-SaaSpocalypse.
So the FIX sale was rather simple. Honestly, I wish I could hold it, but I can’t given the current valuations and volatility of earnings. I simply have no accurate prediction as to the earnings visibility in the next 2-3 years, and I couldn’t justify the risk of holding at the current valuations.
With something like BRK or CSU, I can say with relative confidence of what earnings will be in 2 or 3 years time. Given the current valuations, the risk to reward is attractive. With FIX, it’s entirely skewed opposite and with too many underlying unknowns. I’d be holding a high value high multiple asset with no predictability of future EPS.
To make a point of how volatile a name like FIX is, the stock tanked 25% in one day on Deepseek. Or take this week with similar peers Limbach Holdings and Sterling Infrastructure. Sterling rocketed up about 80% in the past week. Limbach meanwhile missed earnings and plummeted 33% today.
To further understand,m the concentration risk, the technology portion of revenue from FIX rose from 19% to about 56% in just about 2 years. The top customer rose from 5% of revenue to 13%. This isn’t a healthy diversification of revenue or customer base.

They have a book value of roughly 5 B which includes almost no intangibles. It’s a lot of inventory and PP&E though, I admit (which means we can discount both these combined at roughly 50%). And the company has no debt. So their “collapse possibility” is almost zero. So this is a good starting point. They also have 1.5-1.8 B in cash. So this is nice. And company is guiding for 12.5ish EPS for the next 12 months (this does not include buybacks which will conservatively make the EPS closer to 13.
Company trades at roughly 130 at today’s close. A true 10x forward PE. Now the question is…can the company grow from here? I think it’s likely. I put probability at 60% ish. And if they don’t grow, will they collapse? I don’t think so. The company may hover though, I admit.
But what if they grow? In 5 years, their earnings could be 1.8-2B. Not impossible. If that happens, company trades at 15-20x that number while also having bought back shares that whole time. 20x 2B is 40B market cap.
So the math basically says there is small probability of collapse. Small probability of major contraction from here (I’d say going to 10B market cap is possible though in a continued “weakness” environment). So this means you get the chance of a roughly 3x increase in a bull case while in a bear case, you get a chance of a 50% contraction at most. These are good odds. Buy

An MBA might not be enough to understand this concept but the reality is that the PnL looks better when you do layoff which affects the EPS/PE

so wut happened to FSLY? it shows EPS beats by 48% and then fell out of edge

Simply put, AppLovin (APP) just **smashed** their ER with a top and bottom beat + raised guidance. They are going to receive on onslaught of upgrades in the morning IMO.
For context, AppLovin is growing revenue **faster** than both AMD and ARM (59% vs. 38% and 42%), yet it is priced at **less than half** their earnings multiples. AppLovin (Forward P/E 24x) is cheaper than Apple (Forward P/E 28x), yet Apple is growing revenue at roughly **5%** and AppLovin is growing at **59%** with **85% EBITDA margins** \- not that's not a misprint.
**Additional Financial Highlights:**
* Net cash from operating activities was $1.3 billion and Free Cash Flow was $1.3 billion for the first quarter 2026.
* Basic and Diluted earnings per share ("EPS") were $3.57 and $3.56, respectively, for the first quarter 2026.
* During the first quarter 2026, we repurchased and withheld 2.2 million shares of our Class A common stock, for a total cost of $1.0 billion ^(1). At the end of 1Q 2026, we had 336 million shares of our Class A and Class B common stock outstanding.
[https://investors.applovin.com/news/news-details/2026/AppLovin-Announces-First-Quarter-2026-Financial-Results/default.aspx](https://investors.applovin.com/news/news-details/2026/AppLovin-Announces-First-Quarter-2026-Financial-Results/default.aspx)
The only reason the stock seesawed in AH is because they also filed a mixed shelf offering. What most don't seem to know or comprehend is that this was a standard operating procedure because they expire after three years and their last one was filed on June 1, 2023. As you can see above, they have plenty of cash on hand and zero need to execute against this shelf.
Do with this what you will. I think the market is sleeping on a massive beat with pending upgrades.

Solid Q1 from WTS. But they haven't changed their full year 2026 guidance so unsure which way the market takes them tomorrow.
* Net sales of $677 million, up 21% on a reported basis and 12% organically
* Operating margin of 19.6%, up 390 bps; adjusted operating margin of 20.1%, up 110 bps
* Diluted EPS of $2.97, up 34%; adjusted diluted EPS of $3.04, up 28%
* Announced 21% increase in quarterly dividend payments to $0.63 per share
* Maintaining full year 2026 outlook

Sorry, I meant using things like EPS for valuating companies is out the window.

Hey! It's understandable to feel that way as a newbie. While buying at $7.27 means you entered after a significant run, Backblaze did raise their full-year outlook on May 4, boosting confidence, as you can read here: [https://wiseek.ai/ticker/blze/news/backblaze-raises-full-year-outlook-after-q1-revenue-eps-beat-c0be0b9401b8a3e5692c07bf9f3b6c79a004f96840b1df533378340f503aa467/](https://wiseek.ai/ticker/blze/news/backblaze-raises-full-year-outlook-after-q1-revenue-eps-beat-c0be0b9401b8a3e5692c07bf9f3b6c79a004f96840b1df533378340f503aa467/). That news followed their Q1 reports on the same date, which showed strong revenue growth and narrowed EPS losses, so it might be worth digging into their recent 10-Q from May 4 before deciding to sell right away.

Low research take & saying it is a scam is libellous without evidence. Re notice, Why not just use the cash (that nearly is a majority of their market cap) to buy up the stock to $1 compliance for a few days to reset the notice, or do a reverse split? Insiders can just buy it up to compliance very easily. Below are better concerns you could have said
## Addressing the EPS Question — Important Clarification
This came up in the comments and it's worth addressing directly in the body of the post.
Yahoo Finance shows negative profit margins, and on the surface the most recent quarterly EPS was negative. However, pulling the actual filings shows the negative net income is **entirely explained by two one-time items: stock-based compensation and IPO settlement costs.** Strip those out and the underlying business is profitable/break-even at the operational level.
These are classic post-IPO accounting charges with zero bearing on recurring earnings power. This was also covered in the video linked above — I should have flagged it explicitly in the original write-up, so fair point to anyone who caught it. If you're screening on Yahoo's headline EPS without reading the filing notes, you'll misread this every time.
**The structural margin story remains intact.**
***
## Bear Case — Being Honest
- **Liquidity risk** — the float is genuinely tiny. Meaningful position sizing will move the price against you on both entry and exit
- **Zero market awareness** — household name in maritime for 40 years, essentially invisible in public equity markets. Re-rating needs a catalyst
- **Sector sympathy** — despite the asset-light model, the stock still trades in sympathy with broader shipping sentiment. Macro can drag it regardless of fundamentals
- **Cash-burn verification** — the "self-funding" claim is a key pillar of the thesis and warrants a deep dive at the 10-K level before sizing up

$app had good earnings surface level. Haven't delved into it.
Revenue 59% yoy growth. Guidance also good - guiding above wall street estimates. adjusted EPS +113%. EBITDA margin remains crazy at 85%.
I've been in and out of this company. Initially bought at 60, sold at 350-400? range. rebought with price average around 450.

NVO's 2026 Q1 results are in. Since prices have risen recently, and it's being talked about on this sub again, I thought I'd attempt to compare its intrinsic values across a few different valuation models. Full disclosure, I have about 10% of my portfolio in NVO right now, after starting to buy this year. That said, I want to know, what do ***you*** think it's worth?
# Model Summaries
FCFE Model: $55.73
Relative Valuation Model: $114.6
Ben Graham Formula: $69.72
Margin of Safety: 17.35-59.81%
# Business Story
Novo-Nordisk is the second-largest pharmaceutical company in the diabetes/obesity market, behind competitor Eli Lilly. Its market share is approximately \~30% worldwide, versus Eli Lilly's \~35%.
I believe that Novo-Nordisk still enjoys a significant competitive advantage in the form of economies of scale and the remaining patents in its portfolio. At least, it does for now. This edge will probably be eroded away in the coming 5-10 years, as competition increases and patents expire.
There's considerable resistance in the US market specifically, where Eli Lilly enjoys regulatory favoritism. This is where I think the edge will most aggressively be destroyed in the coming years. Even so, its profits are still very healthy and are continuing to grow.
# FCFE Model
In order to more accurately value Novo-Nordisk, I capitalized R&D expenses over the past 10 years. Saving you from the math, I estimated the R&D asset as worth about $26,857.59 million USD, the amortization this year to be worth $3,285.13 million USD, and the R&D expense this year was $8,179.81 million USD. After calculating many values, I added R&D into the mix to get a clearer picture of intangible assets, return on equity, and earnings or dividends. The following numbers are in millions of USD.
* 5Y Normalized FCFE: $18,837.53
* Normalized to revenues over the past 5 years, because FCFE is usually quite volatile.
* TTM Earnings: $20,626.68
* Capitalized R&D, net of non-operating income and interest.
* Non-cash ROE: $47.83%
* High Growth: (1-18837.53/20626.68) x 0.4783 = 4.149%
* Terminal Growth: 3.548%
* Using the long-term Netherlands government bond rate as a proxy for long-term nominal growth in the country.
* Cost of Equity: 4.93 + \~1.191 x 4.23 = 9.966%
* Using the RFR of the US, because I am valuing equity in US dollars. Aswath Damodaran's implied ERP is used here as well. The beta is a bottom-up beta, using total book debt in place of the market value of debt, as I expect Novo-Nordisk is not so distressed as to make a large difference there.
* The beta used is forward-looking and higher than any recent historical regressions, reflecting risk associated with expiring patents and increasing competition.
* Shares (diluted): 4446.4 million
* I added the SBC shares outstanding; otherwise, it would be 4444 million shares.
**No-Growth Value:** $46.55
* (20626.68/4446.4)/.09966 = $46.55
* This implies that there is NO speculative element (i.e., attributable to expected growth) in the market price.
**Estimated Value:** $55.73
* High-growth stage: (1-1.04149\^5/1.09966\^5)/(0.09966-0.04149)x(18837.53x1.04149)/4446.4 = $18.05
* As competitive advantages all but *entirely* disappear, payout ratios will change to reflect this in order to maintain growth. Assuming a return on equity equal to the cost of equity in the terminal stage, payout becomes:
* 1-0.03548/0.09966 = 64.40%
* Cost of equity remains the same in terminal growth, as a beta below 1.2 is still reflective of a stable, mature firm like Novo-Nordisk.
* Terminal-growth stage: $36.73
* Earnings: 20626.68x1.04149\^5 = $25275.8
* FCFE (terminal): 0.644x25275.8 = $16277.6
* 16277.6x1.03548/(.09966-.03548)/1.09966\^5/4446.4 = $36.73
* Cash: $0.9534
* 4239 / 4446.4 = $0.9534
* Total Value: 18.05+36.73+0.9534 = $55.73
**Margin of Safety:** 17.35%
* 1-46.06/55.73 = 17.35%
# Relative Valuation
Since EV/Invested Capital has a high amount of explanatory power for most firms (R-squared of 51.3% in Europe), I would like to use it for valuing Novo-Nordisk. This is not an *intrinsic* valuation, but one based on *how the market should price the asset if it were internally consistent with all other firms.* The equation I am using was derived by Professor Aswath Damodaran, which can be found on his website.
EV/Invested Capital = 4.46 + 0.90 x G + 1.50 x ROIC - 0.05 x DFR
* ROIC: 17.21%
* DFR: 21.12%
* G: 1.39%
* This is a forward analyst estimate of earnings growth, since I did not have an estimate for forward revenue growth.
* Invested Capital: $107968.59 million
* R&D asset is added here.
**Predicted Value:** $114.6
* 4.46 + 0.90 x 0.0139 + 1.50 x 0.1721 - 0.05 x 0.2112 = 4.7201 x 107968.59 / 4446.4 = $114.6
**Margin of Safety:** 59.81%
* 1-46.06/114.6 = 59.81%
# Ben Graham Intrinsic Value Formula
It always comes full circle to Benjamin Graham. His simple heuristic for intrinsic value is still quite potent and useful, and usually quite reflective of our value investor philosophy. Instead of the completely traditional formula, I will use Damodaran's slightly adjusted version to account for current interest rates. Finally, to get a grip on risk in a way that has nothing to do with beta, I will also present some accounting measures of risk.
Value = EPS x (8.5 + 2 x G) x (RFR / AAA Rate)
* EPS: $4.639
* Accounts for R&D capitalization.
* 20626.68 / 4446.4 = $4.639
* Fundamental Growth Rate: 4.149%
* We will consider this as the annual rate for the next 5 years, as that is what the equation calls for.
* RFR: 4.93%
* AAA Rate: 5.51%
**No-Growth Value:** $35.28
* 4.639x8.5x(4.93/5.51) = $35.28
* This implies a speculative element of $10.78 to the market price.
**Estimated Value:** $69.72
* 4.639x(8.5+2x4.149)x(4.93/5.51) = $69.72
**Margin of Safety:** 33.94%
* 1-46.06/69.72 = 39.94%
**Accounting Risks**
* **Default Risk (Interest Coverage Ratio):** 28.09x
* 25043.68x(1-.258)/661.46 = 28.09x
* Verdict: Quite good. Synthetic AAA rating.
* **Leverage (Market Debt/Equity):** 26.78%
* 54844/204801.184 = 26.78%
* Verdict: Unsure. I would need to dig deeper to understand the optimal leverage for this firm.
* **Short-Term Liquidity:**
* **Quick Ratio:** 47.61%
* (4239+11902)/33904 = 47.61%
* **Current Ratio:** 79.97%
* 27112/33904 = 79.97%
* Verdict: Potentially dangerous if there is no option to refinance near-term debt.
* Overall risks: Short-term liquidity is tight, but default risk is very low. With the implied margin of safety being as high as it is, I believe overall risk is very acceptable for the long-pull investor.

The multiple looks extreme, but it’s distorted by very low forward EPS during a turnaround. If earnings normalize, the P/E compresses quickly; if not, downside risk is significant. At this point, it’s more a bet on execution than valuation.

MIAX earnings:
Q1 Net revenue of $128.6 million (+40% YoY)
Q1 GAAP diluted EPS of $1.56; Adjusted diluted EPS of $0.42
Q1 Adjusted EBITDA of $66.1 million (+66% YoY); Adjusted EBITDA margin of 51% (+800 bps YoY)
Reaffirms full-year 2026 adjusted operating expense guidance

Solid showing indeed. This is in no way meant to take away from that, but they did note non-recurring reasons for the EPS beat:
> The increase in net income attributable to the Company was primarily due to the one-time arbitration settlement and the Company's related party equity method investment

Applovin $APP Just Reported Earnings🚨
* Revenue: $1.82B Vs $1.78B EST
* EPS: $3.56 Vs $3.46 EST

I'm sure this .07 vs .016 expected EPS is going to be respected by the market...

Earnings Per Share (EPS): $0.60 (Expected: $0.58)
Revenue: $1.49B (Expected: $1.47B)

Year-over-Year (YoY) Change:

EPS: +9%
Revenue: +20%

Quarter-over-Quarter (QoQ) Change:

EPS: +40%
Revenue: +20%
RIP

it's very interesting to see amd run. did mu and sndsk only run AFTER they recorded the massive EPS?
We're still in confirmatin till q3 right?

I think this year will be $8+. 2027 is generally accepted to be the explosive year, and thats where the assumption on EPS hitting $20 could be possible. Yes it is extreme, however, we just saw the TAM of CPU 2x in less then 6 months, hence, it seems rational to assume nobody, even experts, have a full perspective on demand. But who knows and do your own research - this is just a guess from empirical evidence

Buddy, Ebay at least makes good money. Gamestop needs 5 dilutions and a treasury portfolio to turn profit. 
I hope they figure it out, everyone knows going into a gamestop is a premium experience. Drop ceilings and dirty carpets. 
Last month it was burry is good and anytime i said he's a short hedge funder who operated out of the caymans and is a piece of shit i was downvoted. This week it's people saying how bad ebay is.
Well fuck, it makes a lot more than gamestop. Its EPS is legit and shareholders get dividends.
Right...all bad things