EPISODE · Jun 15, 2022 · 12 MIN
E87 - The Power of Free Cash Flow
from Dividend Investing with Longacres Finance · host Longacres Finance
Do you use Free Cash Flow in your investing process? Maybe you should, today I want to show you the power of free cash flow when applied to stock selection. More specifically I'll be talking about the price to free cash flow ratio that measures the multiple you pay when purchasing a stock in relation to how much free cash flow the underlying business produces. We'll be looking at a long term study that proved this metric can lead to extraordinary results and I'll also break down why the price to free cash flow multiple makes sense as a valuation technique. I hope you enjoy! This episode was originally broadcast on my YouTube channel if you'd prefer to consume the content in video format you can use the link below https://youtu.be/K3VI4AoiZUg M1 Finance referral link: https://m1.finance/UNbCUpuP36lm Here is a link to my YouTube channel if you'd like to see more content from me https://www.youtube.com/c/LongacresFinance And a link to my Patreon page if you feel inclined to support the channel https://www.patreon.com/LongacresFinance Study link: https://static1.squarespace.com/static/559b2c83e4b04f5223761da4/t/57c89802b8a79b70d0bde3c7/1472763917836/Backtest+of+Dow+30+Index1950-2009.pdf Disclaimer: This is intended for entertainment purposes only and should not be taken as investment advice.
What this episode covers
Do you use Free Cash Flow in your investing process? Maybe you should, today I want to show you the power of free cash flow when applied to stock selection. More specifically I'll be talking about the price to free cash flow ratio that measures the multiple you pay when purchasing a stock in relation to how much free cash flow the underlying business produces. We'll be looking at a long term study that proved this metric can lead to extraordinary results and I'll also break down why the price to free cash flow multiple makes sense as a valuation technique. I hope you enjoy! This episode was originally broadcast on my YouTube channel if you'd prefer to consume the content in video format you can use the link below https://youtu.be/K3VI4AoiZUg M1 Finance referral link: https://m1.finance/UNbCUpuP36lm Here is a link to my YouTube channel if you'd like to see more content from me https://www.youtube.com/c/LongacresFinance And a link to my Patreon page if you feel inclined to support the channel https://www.patreon.com/LongacresFinance Study link: https://static1.squarespace.com/static/559b2c83e4b04f5223761da4/t/57c89802b8a79b70d0bde3c7/1472763917836/Backtest+of+Dow+30+Index1950-2009.pdf Disclaimer: This is intended for entertainment purposes only and should not be taken as investment advice.
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E87 - The Power of Free Cash Flow
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