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Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?

To: mauser96 who wrote (7359)	12/6/1999 5:16:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 9068

Thanks Lucius, OT Re: EVA It is apparent from my brief scan of overviews of EVA that I use something closely akin to it, but I use pre-tax operating cash flow rather than profit. If I understand the method correctly (and this is based on some quick over-views), it uses adjusted profits (which amortizes rather than expenses R&D, along with a host of other earnings adjustments) and adjusted invested capital (which would include capitalized R&D) to calculate a rate of return which is compared to the WACC. Again, based on a very quick overview (which means I could be totally off-base!), it seems to me that the method makes a great deal of intuitive sense, but it also seems that it fails to take into account the timing of cash flows which is essential in any DCF analysis. Also, it seems to smear over projects with vastly different risk profiles. I intend to read Al Ehrbar's book, and perhaps I can discuss the subject somewhat more intelligently. TTFN, CTC