Qualcomm Incorporated (QCOM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 165.07

-1.0%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Maurice Winn who wrote (112758)	2/9/2002 8:35:27 AM
From: Moominoid	Read Replies (1) of 152472

Yes, earnings are misleading from the investors perspective because R and D is really investment but it is deducted before tax and investment is deducted after tax from profits. But the real relevant measure for investors is free cash flow (see Miller and Modigliani , 1961). The amount of cash generated after deducting all investments whether they occur before or after tax. It is this discounted free cash flow which is the theoretical value of stocks in the text-books and what an acquirer should pay with adjustment for taxation considerations of a merger.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next