Free cash flow

Does the May price of Sempra Energy (NYSE: SRE) stock reflect what it is really worth? Today we will estimate the intrinsic value of the security by taking expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this …

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from risk.” So it can be obvious that you need to factor in debt, when you think about how risky a given stock is, because too …

David Iben put it right when he said: “Volatility is not a risk that is close to our hearts. What matters to us is to avoid the permanent loss of capital. It is natural to consider a company’s balance sheet when considering how risky it is, as debt is often …

Prysmian SpA (BIT: PRY) is about to be traded ex-dividend in 3 days. The ex-dividend date is one business day before the registration date, which is the deadline for shareholders to be on the books of the company to be eligible for a dividend payment. It is important to know …

Legendary fund manager Li Lu (whom Charlie Munger supported) once said, “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. When we think about the risk level of a business, we always like to look at its use of debt, …

Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu doesn’t care when he says, “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital ”. So it seems like smart money knows that debt – which is usually linked to bankruptcies …

Just because a business isn’t making money doesn’t mean the stock will go down. For example, biotech and mineral exploration companies often lose money for years before they are successful with a new treatment or mining discovery. But the harsh reality is that so many loss-making companies burn all their …

There is no doubt that money can be made by owning shares of unprofitable companies. For example, although the software as a service company Salesforce.com lost money for years as it increased its recurring revenue, if you had owned stocks since 2005, you would have done very well. But while …

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from risk.” So it can be obvious that you need to factor in debt, when you think about how risky a given stock is, because too …

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from risk.” It is natural to consider a company’s balance sheet when considering how risky it is, as debt is often involved when a business collapses. …