Here's what I like to plot using the great charting tools available at TradingView:
1. Free Cash Flow
2. Price to Sales Ratio (PSR)
3. Average Basic Shares Outstanding
4. Long Term Debt (excl lease liabilities)
5. Total Revenues
6. Market Cap
From this I can assess how the structure of the company has changed over time.
For example: Did the company go into more debt over the last 5-10 years and reduce shares outstanding? If so, are they generating higher Free Cash Flow (FCF) overall as a percent of the market valuation (mkt cap)? I like to see the stability or growth in revenues overall and the valuation that the market is placing on the shares of the company. If you look at enough companies, you can see what the market is paying for and decide what you might be willing to pay for any company you are studying.
Sales growth can help cover up a lot of trouble from having a lot of debt, which seems obvious. A lack of sales growth can destroy any chances of ever being able to pay off debt or increase dividends, which means you wont pay as much for a company.
Looking at
CAT here: Compare to 2007 and you can see that debt is up $9 billion, Free Cash Flow is flat, shares outstanding are down 15%, and YET the stock valuation has TRIPLED over that time frame, which doesn't make a lot of sense to me.
1. Free Cash Flow
2. Price to Sales Ratio (PSR)
3. Average Basic Shares Outstanding
4. Long Term Debt (excl lease liabilities)
5. Total Revenues
6. Market Cap
From this I can assess how the structure of the company has changed over time.
For example: Did the company go into more debt over the last 5-10 years and reduce shares outstanding? If so, are they generating higher Free Cash Flow (FCF) overall as a percent of the market valuation (mkt cap)? I like to see the stability or growth in revenues overall and the valuation that the market is placing on the shares of the company. If you look at enough companies, you can see what the market is paying for and decide what you might be willing to pay for any company you are studying.
Sales growth can help cover up a lot of trouble from having a lot of debt, which seems obvious. A lack of sales growth can destroy any chances of ever being able to pay off debt or increase dividends, which means you wont pay as much for a company.
Looking at
註釋
Amazing to me that 註釋
The idea to sell long term leaps (call options) against
Tim West
January 2, 2023
Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com
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Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。