Comments on: Calculate Maintenance Capex in FCF

By: How to Invest: Research and Valuation Process | Old School Value

How to Invest: Research and Valuation Process | Old School Value — Wed, 17 Feb 2010 09:34:03 +0000

[...] means we have to adjust this accounting depreciation to a true measure of depreciation by using maintenance capital expenses [...]

By: Maintenance Capex Calculation Bruce Greenwald Method | Old School Value

Maintenance Capex Calculation Bruce Greenwald Method | Old School Value — Fri, 18 Sep 2009 07:12:53 +0000

[...] a previous post on how to calculate maintenance capital expenditures, I outlined the general aka quick and dirty method of calculating maintenance capex which [...]

By: Warren Buffett Stock Picks Fair Value | Old School Value

Warren Buffett Stock Picks Fair Value | Old School Value — Thu, 10 Sep 2009 08:52:38 +0000

[...] me that most of the current $280mil in capex is due to maintenance rather than growth. Intrinsic Value [...]

By: Warren Buffett Stock Pick Portfolio | Old School Value

Warren Buffett Stock Pick Portfolio | Old School Value — Tue, 18 Aug 2009 07:50:13 +0000

[...] High capex but latest annual result was extraordinary [...]

By: Errors with Morningstar FCF Numbers | Old School Value

Errors with Morningstar FCF Numbers | Old School Value — Thu, 30 Jul 2009 07:07:16 +0000

[...] the capital expenditure numbers were negative but now the numbers are [...]

By: 2009 Top 40 Best Stocks to Retire On: Part 3 | Old School Value

2009 Top 40 Best Stocks to Retire On: Part 3 | Old School Value — Tue, 07 Jul 2009 07:33:05 +0000

[...] Calculate Maintenance Capital Expenditure in FCF [...]

By: Jae Jun

Jae Jun — Mon, 29 Jun 2009 05:41:10 +0000

@ Borislav
Interesting point about the car replacement analogy but it’s important to remember the point that says: “So how does one overcome these discrepancies? By analysing this ratio over a period of several years, not just one. This way, you’ll be able to see the difference between the actual cash capex figure and the accounting depreciation.”

Thanks for the link as well.

By: Weekly Links: June 28, 2009 | Dividends Value

Weekly Links: June 28, 2009 | Dividends Value — Sun, 28 Jun 2009 10:32:50 +0000

[...] Old School Value presented Calculate Maintenance Capital Expenditure in FCF [...]

By: Weekly Dividend Investing Roundup - June 27, 2009 | The Dividend Guy Blog

Weekly Dividend Investing Roundup - June 27, 2009 | The Dividend Guy Blog — Sat, 27 Jun 2009 11:01:09 +0000

[...] Maintenance Capital Expenditure in [...]

By: Borislav Koev

Borislav Koev — Wed, 24 Jun 2009 14:41:02 +0000

Thank you for your very interesting article and your blog!

but check this out!
…any long-term car owner knows, it costs more to replace a ‘depreciated’ old vehicle with a modern equivalent.

http://www.intelligentinvestor.com.au/articles/102/Crunching-cash-flow-ratios-.cfm?articleID=19600

I have the same feeling that the Maintenance Capital Expenditure should be a bit higher than the depreciation. How high – I’m investigating at the moment.

Regards,

Borislav