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Strategies & Market Trends : Free Cash Flow as Value Criterion -- Ignore unavailable to you. Want to Upgrade?

To: jbe who wrote (122)	11/3/1997 10:18:00 PM
From: TimmFred	Read Replies (1) \| Respond to of 253

joan, I will sneak in for the gimme -- 78 is INTC's current market price per share or thereabouts. Now about WDRY (of course), seems to me negative P/E is due only to large D & A, which don't we ignore in a cash-flow analysis? The recent 2Q announcement indicates EBITDA of $1.50 per share for the quarter. Subtracting about $1.05 per share per quarter interest, I get free cash flow of $.45 for the quarter, or $1.80 annualized. With a price per share of 21, I think that's 8.57% annual return even under a no-further-growth scenario.