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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: JAPG who wrote (43515)	6/15/2001 2:12:22 PM
From: Jurgis Bekepuris	Read Replies (1) of 54805

>the only way a company could have 0 value--when the cash flow growth rate is 0%-- is when the initial >cash flow is negative. It is possible that the actual value is not 0, but close to 0, e.g. $0.3 and Fortune just unfortunately (pun intended) dropped the trailing digits. Be careful when you say "cash flow". They are talking about free cash flow, though this is not 0 for CSCO & SEBL as far as I know either. They "adjust the cash flow by a discount rate known as the company's weighted average cost of capital". I am not sure why they do this since presumably this already should have been subtracted while obtaining FCF. Maybe you should just ask Howell directly: oracle-www.dartmouth.edu Jurgis - Journalists are worse than economists

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