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Strategies & Market Trends : Free Cash Flow as Value Criterion

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To: FJB who wrote (153)11/5/1997 2:21:00 PM
From: Reginald Middleton   of 253
 
<The effect of huge capital expenditures on Free Cash Flow. 5 Yr. Annual 3 Yr. Annual Free Cash Flow Free Cash Flow Growth Rate Growth Rate Cisco 78.3 62.0 Microsoft 57.4 53.9 Coca-Cola 52.1 39.4 Intel -0.4 -3.4 worth.com;

What may be illuminating is to post the equity returns of the companies that you listed. Excessive capital expenditures are not necessarily bad. In INTC's case, they were investing for growth in a capital intensive industry. Hence there share price skyrocketed.
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