Free Cash Flow as Value Criterion Message Board

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Strategies & Market Trends : Free Cash Flow as Value Criterion

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To: Pirah Naman who wrote (57)	10/30/1997 7:12:00 PM
From: Greg Jung	Read Replies (2) of 253

Thread, I look forward to reading the posts when I have time. I've been trying to figure why IBM is considered a value stock. Free cash flow is one item used to justify it. However that cash is immediately used to buy stock - and they also borrow money to do this, also. Nevertheless again today its been listed under the "value" categories. The integrated performance should reflect in shareholder equity - right? This value remains constant, per share. Total "assets" increase as 7% compounded, per share, during these boom times of technology industry. However (assets - debt)/share is about flat. Why can anyone recommend buying IBM (including IBM, itself)? Here is where I've compiled the data. exchange2000.com They seem to generate cash from the business, but it disappears. Greg

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