In the most recent quarter, 91% of SEBL's free cash flow was options exercise related, in year 2000, 71% of SEBL's free cash flow was option exercise related, and in year 1999, 211% of SEBL's free cash flow was options exercise related. In year 1999, SEBL's adjusted free cash flow per share is a negative 10 cents per share. In year 2000, SEBL made 15 cents per share of adjusted free cash flow, up less than 100% from two years earlier in 1998. Yes, I know, tornadoes are revenue based, but still…. In the most recent quarter, SEBL made 1.8 cents per share of adjusted free cash flow. Run this out four quarters and you get 7 cents per share adjusted free cash flow run rate for the year. Purchase this 7 cents adjusted FCF run rate at $40 per share and you get a whopping 571 price to adjusted free cash flow ratio.
Hi Huey,
I too have begun looking at FCF corrected for stock options, but I'm getting different results. Can you explain what I'm missing?
I have $126 million in FCF for the quarter, and $31 million for the tax benefit of stock options, i.e. 25% of the FCF, not 91%.
Is there another aspect of stock options that I should be correcting for?
Thanks
Ethan |
