Value Investing Forum

Discuss value investing stock ideas

 You must be logged in to post
Search Forums:


 






Wildcard Usage:
*    matches any number of characters
%    matches exactly one character

Home Questions Huge difference between FCF and Owner Earnings calculation

Huge difference between FCF and Owner Earnings calculation
Page:   1  
No Tags
UserPost

12:54 am
March 6, 2011


Jae Jun

Admin

posts 1453
2

It means that the company has a large working capital.

This is something you will have to scrutinze, but if you exclude working capital, you can think of it as the "FCF version" of EBITDA because it shows the real profitability of the company.

3:55 pm
March 5, 2011


Roger

Member

posts 13
1

Hi,

 

If in a certain stock valuation there is a huge difference between the outcome of the FCF and the Owner Earnings calculation method, what would you suggest? I regularly check the Morningstar website to see if my calculation is nearly the same as they have allthough I don't want to change my figures (because of the self-fullfilling prophecy)…

 

What would you advice to do in such cases? Thanks in advance.

 

Kind regards,

Roger
No Tags
Page:   1  


About the Stock Valuation Software forum

Forum Timezone: America/Los_Angeles

Most Users Ever Online: 170

Currently Online:
16 Guests

Currently Browsing this Topic:
1 Guest

Forum Stats:

Groups: 4
Forums: 40
Topics: 763
Posts: 4096

Membership:

There are 956 Members
There have been 9 Guests

There is 1 Admin
There are 3 Moderators

Top Posters:

somrh – 336
Graeme – 180
nell – 100
zehua – 96
valueinvestortoday – 80
krackerjack121 – 69

Recent New Members: jman, matias091, foundos, pberardi, JohnnyB, Style

Administrators: Jae Jun (1453 Posts)

Moderators: Jae Jun (1453 Posts), VANYA (1 Post), djsun (0 Posts)