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Strategies & Market Trends : Free Cash Flow as Value Criterion

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To: Reginald Middleton who wrote (190)11/10/1997 7:43:00 PM
From: Pirah Naman  Read Replies (1) of 253
 
While I agree with the point you are making, a clarification:

> FCF tells you nothing outside of how much money is in the company's checking accounts.

Cash/short term investments may give you that, but not trailing FCF.

Also while it may not have been your intent, some of your writings have suggested that FCF - based pricing does not project future FCFs and discount them. It does both, and while you use additional parameters compared to most, "your" method is a FCF - based pricing method.
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