OWNER EARNINGS / LISTED COMPANIES / FREE TOOL

US and NSE sector stress scenarios

Change each profile’s cash, investment or capital retention, and priority-claim assumptions. Compare a profile with its own base case.

Parts 7–10; Appendix 04; workbook Profile Stress!C7:N15. All nine named-company profiles use hypothetical indices. Inputs are illustrative assumptions, not live prices or investment recommendations.

Jump to scenario results ↓

Semiconductors — NVIDIA teaching profile

Inventory and supply commitments; reconcile all operating working capital.

Cash-capacity index:

Cash change (%):

Reinvestment / retention index:

Reinvestment change (%):

Priority-claims index:

Claims change (%):

Data centres — Equinix teaching profile

Power, utilization, renewal and financing; recurring capex is not automatically maintenance.

Cash-capacity index:

Cash change (%):

Reinvestment / retention index:

Reinvestment change (%):

Priority-claims index:

Claims change (%):

Banking — Equity Group teaching profile

Credit losses, capital retention and risk-weighted assets; not an industrial cash-flow model.

Cash-capacity index:

Cash change (%):

Reinvestment / retention index:

Reinvestment change (%):

Priority-claims index:

Claims change (%):

Insurance — Jubilee teaching profile

Claims, reserves, solvency and permitted parent remittances.

Cash-capacity index:

Cash change (%):

Reinvestment / retention index:

Reinvestment change (%):

Priority-claims index:

Claims change (%):

Energy — KenGen teaching profile

Plant renewal, construction, hydrology/output and offtaker collections.

Cash-capacity index:

Cash change (%):

Reinvestment / retention index:

Reinvestment change (%):

Priority-claims index:

Claims change (%):

Agriculture — Kakuzi teaching profile

Crop yield, biological assets, seasonal funding and shipment timing.

Cash-capacity index:

Cash change (%):

Reinvestment / retention index:

Reinvestment change (%):

Priority-claims index:

Claims change (%):

Telecom — Safaricom teaching profile

Network renewal, spectrum, expansion, leases and subsidiary funding.

Cash-capacity index:

Cash change (%):

Reinvestment / retention index:

Reinvestment change (%):

Priority-claims index:

Claims change (%):

Manufacturing — BAT Kenya teaching profile

Volume, excise/tax timing, inventories and physical replacement.

Cash-capacity index:

Cash change (%):

Reinvestment / retention index:

Reinvestment change (%):

Priority-claims index:

Claims change (%):

Property — Home Afrika teaching profile

Project completion, restricted deposits, customer collections and senior claims.

Cash-capacity index:

Cash change (%):

Reinvestment / retention index:

Reinvestment change (%):

Priority-claims index:

Claims change (%):

Restore teaching example

Amber fields are editable. Missing required inputs are not treated as zero. Inputs are used for this response and are not stored in a profile or lead list.

Your scenario, step by step.

All amounts below are index points. Each profile has a different economic meaning.

Separate profile scenarios — index points, not company values

Teaching profile	Base residual	Stressed cash	Stressed retention	Stressed claims	Stressed residual	Change
Semiconductors — NVIDIA teaching profile	55	80	38.5	12.5	29	-26
Data centres — Equinix teaching profile	30	90	54	27.5	8.5	-21.5
Banking — Equity Group teaching profile	35	85	36	43.75	5.25	-29.75
Insurance — Jubilee teaching profile	35	80	23	56.25	0.75	-34.25
Energy — KenGen teaching profile	40	80	60.75	16.5	2.75	-37.25
Agriculture — Kakuzi teaching profile	55	75	30	23	22	-33
Telecom — Safaricom teaching profile	45	85	46	16.5	22.5	-22.5
Manufacturing — BAT Kenya teaching profile	45	85	22	40.25	22.75	-22.25
Property — Home Afrika teaching profile	30	75	56.25	30	-11.25	-41.25

Interpret the result.

These nine normalized scenarios reproduce Profile Stress rows 7–15. They are hypothetical and must not be ranked as issuer returns, valuations, probabilities or measured financial strength.

The arithmetic is common; the financial meaning differs by sector. Bank capital, insurer remittances and industrial cash flow require different underlying evidence.

A negative index residual means a gap under the entered assumptions, not an observed shortfall at the named company.

Formulae and symbol definitions.

\[ R_0=C-I-P \]

Base residual index = cash-capacity index − reinvestment/retention index − priority-claims index.

\[ R_1=C(1+s_C)-I(1+s_I)-P(1+s_P) \]

Stressed residual applies a separate percentage change to each index component.

Symbol	Definition and units
$$C,I,P$$ C, I, P	Cash-capacity, reinvestment/retention and priority-claims indices. Their economics differ by sector.
$$s_C,s_I,s_P$$ sC, sI, sP	Separate scenario changes expressed as decimals in the formula and percentages in the inputs.
$$R_0,R_1$$ R0, R1	Base and stressed residual index points. Not money, return, value or observed issuer headroom.

Read the research and workbook evidence.

Open the companion article →

Existing FCFF/WACC valuation explorer · Detailed workbook library

Method background: Berkshire Hathaway’s 1986 owner-earnings discussion. Filings require accounting interpretation; these tools do not fetch SEC or NSE data automatically.

Symbol	Definition and units
$\(C,I,P\)$ C, I, P	Cash-capacity, reinvestment/retention and priority-claims indices. Their economics differ by sector.
$\(s_C,s_I,s_P\)$ sC, sI, sP	Separate scenario changes expressed as decimals in the formula and percentages in the inputs.
$\(R_0,R_1\)$ R0, R1	Base and stressed residual index points. Not money, return, value or observed issuer headroom.