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Owner Earnings for Sight Sciences Inc

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SGHT: Sight Sciences Inc

Sight Sciences, Inc., an ophthalmic medical device company, focuses on the development and commercialization of surgical and nonsurgical technologies for the treatment of eye prevalent diseases. It op...

2.67 USD
Price
USD
Fair Value
Upside
2.17 - 8.45
52-week range

Analysis

How does Sight Sciences's Owner Earnings benchmark against competitors?

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Metric Usage: Owner Earnings

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owner_earnings
Slug
number
Datatype
text
Format
current
Default Period
FY, Q, LTM, YTD
Periods Supported
Free
Plan

To view the full list of supported financial metrics please see Complete Metrics Listing.

Similar Metrics

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Metrics similar to Owner Earnings in the financials category include:

  • Interest And Invest. Income (Rev) - Interest income from loans made, or income related to investments made, as a normal part of daily operations.
  • Net Income (CF) - This item represents the net earnings for the given period, as reported by the companies following indirect method of calculating cash flows from operations. In cases where the companies follow direct method of cash flow, this line item will be picked from income statement.
  • Deferred Charges, Current - A current asset arising from costs that have been paid where the benefits are deferred to a later date.
  • Other Investing Activities - This item represents all other investing cash flows not included in any specific data item.
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Owner Earnings

A measure of free cash flow made famous by Warren Buffett when he wrote about it in Berkshire Hathaway's annual report in 1986. Mr. Buffett stated tha...

Definition of Owner Earnings

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We use the owner’s earnings calculation described with Warren Buffett’s 1986 letter to shareholders.

If we think through these questions, we can gain some insights about what may be called "owner earnings." These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges such as Company N's items (1) and (4) 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))

The general formula can be summarized as follows:

(+) Net Income
(+) Depreciation & Amortization
(-) Maintenance Capital Expenditures
(-) Change in Working Capital
(=) Owner Earnings

Note, for financial companies like banks, the net working capital change is ignored given their business model.


Click the link below to download a spreadsheet with an example Owner Earnings calculation for Sight Sciences Inc below:

Sector Benchmark Analysis

Sector
Industry Group
Industry
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-476.5 M273.5 M1.023 B1.773 B2.519 B0400800

The chart above depicts the distribution of owner earnings for companies operating in the Healthcare sector in the Developed economic region. Over 1,900 companies were considered in this analysis, and 1,831 had meaningful values. The average owner earnings of companies in the sector is 24.842 M with a standard deviation of 250.2 M.

Sight Sciences Inc's Owner Earnings of -41.081 M ranks in the 19.9% percentile for the sector. The following table provides additional summary stats:

Owner Earnings In The Healthcare Sector
Economic Risk RegionDeveloped
Total Constituents1,906
Included Constituents1,831
Min-539.4 M
Max2.454 B
Median-4.188 M
Mean24.842 M
Standard Deviation250.2 M

You can find companies with similar owner earnings using this stock screener.

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