EBS
TechnologyValuation Breakdown
Technology companies combine high growth potential with the risk of overvaluation. This model blends DCF (60% weight, capturing long-duration growth) with a P/E sanity check (40% weight, capping speculative excess). The DCF uses the slowest growth decay (0.05) recognizing that tech companies can sustain competitive advantages longer. The P/E component applies a dynamic ceiling: max P/E = min(growth% x 1.5, 30), preventing runaway valuations.
Valuation Track Record
Retroactive intrinsic value vs actual close price — EBS
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2024
EBS exhibits a Beneish M-Score of -2.4415, indicating a low likelihood of earnings manipulation. However, the earnings quality metrics reveal a concerning cash conversion rate of 38.4/100, which may signal potential liquidity issues.
- Low cash conversion score of 38.4/100 suggests potential liquidity issues that could affect operational stability.
- SGAI at 1.0975 indicates higher selling, general, and administrative expenses relative to sales, which may impact profitability.
- Beneish M-Score of -2.4415 is well below the manipulation threshold of -1.78, indicating a lower risk of earnings manipulation.
- Strong receivables score of 100.0/100 suggests effective management of credit sales and collections.
The ownership structure shows a significant institutional stake of 25.4%, which may provide stability; however, the presence of multiple individual shareholders could lead to potential conflicts in governance.
Monitor cash conversion closely and assess operational efficiency to mitigate liquidity risks. Consider engaging with management to understand strategies for improving cash flow.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for EBS — hover nodes for intel, click to navigate