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
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https://www.youtube.com/c/LongacresFinance
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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.