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Showing posts with label owner earnings. Show all posts
Showing posts with label owner earnings. Show all posts
Tuesday 14 May 2024

CHECKLIST ON HOW TO VALUE SHARES

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BIGGEST RISK:  PAYING TOO MUCH The biggest risk you face to be a successful investor in shares is paying too much.    It is important to re...

The importance of growth

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If you are going to buy and own expensive shares, you must be very confident that high rates of growth can continue for a long time into the...

Using owner earnings to value shares: Setting a maximum price method

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Setting a maximum price and buying price for Company X shares Current cash profit per share 11.6 sen Divide by interest rate [inflation +3%]...

Using owner earnings to value shares: Cash yield or Interest rate method

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This approach is very simple. Take the owner earnings or the cash profit per share and divide it by the current share price to get a cash in...

Warren Buffett has looked at owner earnings (cash profits) of businesses for many years.

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 In his 1986 letter to shareholders, Warren Buffett described how he worked out what he called the "owner earnings" (referred her...
Thursday 11 April 2019

Coca Cola's intrinsic value when Buffett first purchased it in 1988.

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Buffett first purchased Coca-Cola in 1988.  In 1988: Owner earnings (net cash flow) of Coca-Cola = $828 million. Risk free rate of 30 ...
Sunday 15 April 2018

Free Cash Flow to Equity

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Free cash flow to equity From Wikipedia, the free encyclopedia In  corporate finance ,  free cash flow to equity  (FCFE) is a m...

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...

Free Cash Flow For The Firm - FCFF

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What is 'Free Cash Flow For The Firm - FCFF' Free cash flow for the firm (FCFF) is a measure of financial performance that expres...
Friday 21 July 2017

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...
Friday 22 March 2013

Warren Buffett's Owner's Earnings Calculation

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Wednesday 17 October 2012

How Warren Buffett valued Washington Post Company

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Washington Post Company (WPC) 1973:  Total Market cap $ 80 million. Most security analysts, media brokers, and media executives estimate...
Thursday 3 May 2012

Does a High P/E Ratio Mean a Stock is Overvalued? The Answer May Surprise You!

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A mistake many people tend to make is to associate this with only buying low  price-to-earnings ratio  stocks. While this approach has ce...
Saturday 25 February 2012

Owner Earnings or Free Cash Flow

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WARREN BUFFETT ON OWNER EARNINGS Warren Buffett has referred to the ‘owner earnings’ of a company as the true measure of earnings.   He ...
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Sunday 4 April 2010

Buffett (1986): The concept of Owners Earnings and Maintainance Capex

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We got to know the master's views on his textile business. Let us go a year further and try to discuss what the guru has to say in his ...