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To: Brian K Crawford who wrote (3658)7/11/1999 11:29:00 AM
From: Mike Buckley  Respond to of 54805
 
Brain,

You mentioned that you're not aware of any calculators that take cash into account. If you have other web-site calculators quickly at hand, I'd appreciate you letting us know about them.

I don't use discounted methods of analysis for the reason I already mentioned combined with the fact that it takes a lot of time to develop a spreadsheet, think about the appropriate assumptions, tweek them, etc., etc., etc. However, if I could eliminate the time factor by using one of your web-site calculators that allows me to satisfy my valuation habit, I would be forever indebted to you for preventing me from going into withdrawal. :)

--Mike Buckley



To: Brian K Crawford who wrote (3658)7/11/1999 11:56:00 AM
From: Mike Buckley  Respond to of 54805
 
Brian,

I stand corrected. You mentioned that you're not aware of any calculators that take cash into account. That makes a lot of sense now that I think about it.

The calculator already takes into account the current earnings. If it also includes the cash, it would be double counting. Some of that cash came from the earnings.

A really sophisticated calculation would separate the cash generated by earnings from the cash that is invested capital. See what I mean about how time-consuming a good discounted analysis can be?

--Mike Buckley