FCF Archives - GrowthRater

Tag Archives for " FCF "

How ‘free’ is your ‘free cash flow’?

Back in January, Alphabet decided to take the high ground in its reporting by including Stock Based Compensation (SBC) within its adjusted ‘non-Gaap’ earnings’. As a bit of an old chestnut for analysts and portfolio managers and something the IASB has mandated to be included in IFRS reporting since 2005, it was perhaps no surprise […]

Is it a surprise that most investors lose money when they are relying on a flawed metric?

Confused? Don’t worry, because you’re supposed to be. That way you can be sold a metric that has been anointed as the approved currency by which you are meant to determine the value of the goods or services being transacted. The fact that this currency may be flawed is fairly immaterial because it’s good for […]

IHS Markit should be the first to agree that rubbish (‘adjusted’ data) in will lead to rubbish (valuation) out

Give the market a number and it’ll quickly throw back a result. No one should doubt investors’ ability to do basic maths. Give it the wrong number however, and the result will more than likely also be wrong. The old adage of “rubbish in, rubbish out” remains as valid now as ever, which is why […]