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Strategies & Market Trends : Value Investing

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To: Kapusta Kid who wrote (38200)6/7/2010 12:52:10 PM
From: Spekulatius  Read Replies (1) of 78682
 
re EME - you FCF yield is off, at least the way I calculate FCF. Their cash increased because their receivable shrunk and their receivable shrunk because their revenue base shrunk.

I calculate FCF as earnings + depreciation - Capex and ingnore working capital changes (in most cases). This eliminates most wild swings. With this, FCF is about equal to earnings, which is all one can reasonably expect on a LT bases anyways (unless a company finds a way to reduce fixed assets and increase then business at the same time).
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