High Quality Stocks Are Cheap Based On Free Cash Flow
The chart in this post shows companies’ free cash flows (excluding financials and utilities) compared to BAA corporate bond yields. The ratio is the highest seen in the last 50 years. It is free cash flow that pays investors and one reason at HORAN Capital Advisors we take a hard look at a companies cash flow statement and dividend practices.
GM: Grand Miracle, Grand Milestone, Grand Mania or Grand Misery?
Apple’s stock is fast approaching its 52-week high of $177.50 set almost exactly 1-yar ago and seems within striking distance of its all-time high valuation near $200. I wrote at the beginning of the year about Apple’s intrinsic value and recommended buying the stock when it hit $89/share amid rumors of Steve Jobs’ declining health and Apple’s inability to continue to make hit products.
Provider of Mortgage Servicing Solutions Combines Affiliate Operations Into One-Stop Shop
Long US / Short Europe? Valuation Gap Largest Since 2003
I don't know what's in the water over there in Europe but here I thought the US market was expensive... I guess it's all relative. p.s. I disgaree with the valuation on US stocks as there are now about 18,219 ways to measure P/E multiple. But as long as we are incorrectly measuring US and European stock valuation the same way, at least its apples to apples.
An in depth look at GE's current valuation using two valuation methodologies - discounted cash flow and public comps. We determine through two methods that GE's stock currently implies a valuation which allows you to buy growth in its core businesses as well as any value in the capital finance segment for free.