Value with no growth, against the price: what it means and how to read it
What is Value with no growth, against the price?
What the company would be worth if its profits never grew again, compared with today's price. Known as earnings power value.
Earnings power value, developed by Bruce Greenwald in the value investing tradition, asks what a business is worth on its current earning power alone, with no credit for growth. It avoids the weakest part of most valuations, which is forecasting.
Growth only adds value when a company earns more on new capital than that capital costs. So the gap between the price and the no-growth value is a measure of how much the market is counting on profitable growth.
How it is calculated
A worked example
Why does Value with no growth, against the price matter?
It is a floor rather than a target. It shows how much of the price is paid for what the business earns now and how much for growth that has yet to happen.
What is a good Value with no growth, against the price?
Above zero, the price is below even the no-growth value. Below zero, the gap is what you are paying for future growth.
A positive figure is rare among good businesses and suggests the market expects earnings to shrink. For most sound companies it is negative; the question is whether the growth being paid for is realistic.
What are the common mistakes with Value with no growth, against the price?
What is a typical Value with no growth, against the price in India today?
The median across the 1 listed companies that report it, as of 13 Oct 2026. Half sit above each figure and half below.