racemize Posted February 1, 2012 Share Posted February 1, 2012 I'm curious as to what methods everyone uses. I started by using the relatively simple cash flow statement method (add back depreciation/amortization and other appropriate non-cash charges then subtract estimated cap ex for maintenance to get owner earnings). However, on a friend's recommendation, I've been reading "Valuation: Measuring and managing the value of companies", which uses NOPLAT and a lot of balance sheet reorganizations to come up with FCF and ROIC. This second method is much more intensive, but perhaps more accurate? I'll need to apply it a few times first. In any event, what do you use? Link to comment Share on other sites More sharing options...
Ben Graham Posted February 2, 2012 Share Posted February 2, 2012 Warren Buffett's Secret Formula and Methodology Buffett Stock Value Formula: Free Cash Flow / Risk Free Rate http://www.wikiwealth.com/dictionary:warren-buffett-intrinsic-valuation Link to comment Share on other sites More sharing options...
Packer16 Posted February 2, 2012 Share Posted February 2, 2012 I use basic FCF from Morningstar as is calculated for each stock on thier website as a starting point. I will then see if there are adjustments by diving into the 10-Qs and 10-Ks. Packer Link to comment Share on other sites More sharing options...
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