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Showing posts with label FCF. Show all posts
Showing posts with label FCF. Show all posts
Wednesday, 3 December 2025

My personal market reflection from 2010, focusing on the KLSE recovery after the 2008 downturn.

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This post reflects on the recovery of the KLSE (KLCI) from its March 2009 low to January 2010, offering observations and investment advice. ...
Tuesday, 28 May 2024

High capex companies are usually bad investments as they rarely produce enough free cash flow

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Supermarket companies, in general have consistently spent more on capex than depreciation and produced very low free cash flow per share ...

How depreciation of assets can distort profit figures

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Depreciation is an expense that matches the cost of a fixed asset against the revenues it helps to produce.  The cost of an asset is spread...
Monday, 27 May 2024

Looking for possible investment candidates: Four simple rules when comparing FCFps with EPS

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  Summary Expenses and depreciation reduce profits.  Capex reduces FCF. When expenses are not expensed against revenues but considered as ca...

If free cash flow per share is consistently a lot lower than EPS, this is a warning sign.

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 The 2 main reasons for FCF being lower than a company's EPS are: 1.  Poor operating cash conversion 2.  High levels of investment in ne...

Quality companies turn most of their profits into free cash flow on a regular basis

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We can use free cash flow as a tool for checking the quality of a company's profits. The stock market has been littered with companies ...

Checking the safety of dividend payments

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Dividends are an important part of total returns from owning a share.   Dividends are a cash payment and therefore the company needs to have...
Sunday, 26 May 2024

When free cash flow may not be what it seems

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Free cash flow comes with a few caveats one need to be aware of. Besides calculating a company's free cash flow, one need to study its...
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Tuesday, 19 May 2020

Is it inexpensive? Four different price metrics:

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#Nothing is worth infinity.  We can overpay for even the best of companies. So even if we  understand a busi ness (first step) and  fi...
Sunday, 15 April 2018

KEY INPUTS TO FREE CASH FLOW (FCF)

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KEY INPUTS TO FREE CASH FLOW (FCF) Free Cash Flow (FCF) is calculated by taking the Operating Income (EBIT) for a business, minus its Ta...
Wednesday, 26 July 2017

How to find Quality Companies? (Checklist)

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Here is a useful checklist you can use when you are searching for quality companies: 1.   Company's sales record. You want to see h...

Quality companies turn most of their profits into free cash flow on a regular basis.

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The stock market is littered with companies that seemed to be profitable but turned out to be anything but. By studying how effectively ...
Tuesday, 25 July 2017

How to calculate the Free Cash Flow to Firm and Free Cash Flow to Shareholders

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There are two definitions of free cash flow , both of which are useful for investors: 1.  Free cash flow to the firm (FCFF) 2.   Free...
Friday, 21 July 2017

Comparing average capex spending with depreciation and amortization.

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1.   Where depreciation and amortization <<< capex In some cases, the annual depreciation and amortization expense is a lot less...

Calculating Owner Earnings of Buffett or the Company's Cash Profits

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Buffett in his 1986 letter to shareholders described how he worked out what he called the "owner earnings".    This is also ref...
Sunday, 30 April 2017

The Free-Cash-Flow to-Equity (FCFE) Model

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Many analysts assert that a company's dividend-paying capacity should be reflected in its cash flow estimates instead of estimated fut...
Tuesday, 4 March 2014

How to Value a Company in 3 Easy Steps

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How to Value a Company in 3 Easy Steps - Valuing a Business Valuation Methods Capital Budgeting Valuing a Business How much is a busines...
Friday, 12 July 2013

A practical analysis of dividend

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A Practical Analysis Of Unilever Plc's Dividend By Royston Wild | Fool.co.uk The ability to calculate the reliability of dividends...
Wednesday, 3 July 2013

Alternative to Discounted Cash Flow Method

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What do you use if you don't want to or can't use the discounted cash flow (DCF) method of valuing a stock?   There are other met...
Friday, 22 March 2013

Warren Buffett's Owner's Earnings Calculation

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