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Normal earnings estimator
Paste cleaned earnings and a reliability rating. Get low, normal and high earnings for an ordinary year.
Normal earnings estimator is a free AI skill for the job "Handle money and investing". Give the instructions to an AI assistant that supports the required files and tools, then review its output.
Free · No account · Made by AI Blocks · Level: advanced · Thinking: high
What it does
Value that follows last year's profit swings with the economy. Value that follows a normal year's profit follows the business. The hard part is deciding which years count and what to do with the bad ones and the best one. This skill averages five to ten years and shows loss years both ways. It uses the latest year alone only when it was not a boom year, earnings have risen for some years and the industry supports growth. It does not project a trend. A rising line may earn a higher multiple later, but it does not add earnings that have not been earned. It returns a low, normal and high figure with a reason for each. It is a method, not financial advice.
You give it
- Cleaned and restated earnings by year, five to ten years
- The reliability rating from "Earnings record reliability checker"
- Share counts by year (optional)
You get
- The window and share count used
- Averages with loss years in and at zero
- A statement of whether the latest year was used alone, and why
- Low, normal and high earnings per share and in total, each with a reason
- A note on how sure the range is
Use it when
- You need one earnings figure to value a business and have several years of results.
- The latest year is far from the earlier ones and you cannot decide how to treat it.
- You want a range, not a single number.
How to use it
- Start a chat with the skill. Open it if you added it to your AI, or copy it and paste it in.
- Paste the cleaned earnings and the rating from the earlier step.
- Add the share count for each year if you have it.
- Read why it did or did not use the latest year.
- Take the range to "Earnings value range builder".