FCF as chart

newwurldmn · Nov 14, 2021

So research has shown that cashflow is a poor proxy for earnings because cashflow is very volatile (especially free cashflow).

taowave · Nov 14, 2021

If anything,it would be price/free cash flow.Absolute Free Cash Flow isn't very helpful..Peter Lynch did something similar with P/E..I think his "magic line" was 15x earnings..

SunTrader said:
Did you see my post above - #7?

The OP has a squiggly indicator line on his chart. It is not a straight line - quarter to quarter. So it would seem it is not just cash flow projected forward.

Let's see what they have to say and whether that explains it.

longandshort · Nov 15, 2021

newwurldmn said:
So research has shown that cashflow is a poor proxy for earnings because cashflow is very volatile (especially free cashflow).

Ebit is the superior metric

taowave · Nov 15, 2021

operating earnings vs operating cash flow- cap x??
No gold there

If I had any balls,I would close my eyes and buy top top 5 short interest/ percent of float stocks ..Do fundamnetals matter any more

longandshort said:
Ebit is the superior metric

longandshort · Nov 15, 2021

taowave said:
operating earnings vs operating cash flow- cap x??
No gold there

If I had any balls,I would close my eyes and buy top top 5 short interest/ percent of float stocks ..Do fundamnetals matter any more

I meant from a fundamental approach, as ebit is the core profitability to all stakeholders. Ebit/ev % also one of the better value indicators.

I’d argue that there is not that much value in historical data whether fundamental or technical lol. Scenarios of future output * price are way more important and feed into the investment decisions of buy side firms, which drive most of the market volume.