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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: NikhilJog who wrote (46381)1/31/2012 7:01:44 PM
From: Paul Senior  Read Replies (1) | Respond to of 79054
 
FCF: Yeah I vaguely remember those terms from fcf articles in the Financial Analyst Journal back in the '70's.

Anybody can use any metric they want if it helps them pin down what they believe will be a value number and a buy point. For "standard" fcf, a 15% "yield" --- I get that that would be good or very good. For a fch margin of 3% -- I've no idea what that is or its relevance. If it's important to the o.p (original poster) though, then that's all that counts.

I assume we have at least a few people here who like and maybe use fcf in their analyses and in making their stock buy/sell decisions. For me, I rarely make such calculation, and find fcf as reported by Yahoo or other sites to be only occasionally important for me in making a buying decision. I find not much difference in results in basing decisions on the standard metrics (p/bk, p/e, roe, etc) vs. on fcf.

There's really not much interest on SI in discussing fcf methods and significance. I keep the fcf board on my subject list, and there's not been a post there in .... eleven years (lol).

Subject 17762