I believe FCF has a very serious flaw in its computation. Traditional measure is CFO- Capex. But, for a business to grow it needs to spend heavy amount on capex, R&D and SG&A in current year in order to receive the benefit from future. If a business have a good runway ahead, and they want to invest heavily for growth, they will have always fluctuating or even negative FCF like Amazon, Adani green etc.
Calculating owners earnings is the better way, which is widely used by most value investors.
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