Operating at the Intersection of Technology and the Capital Markets
Tag: cash flow
Hate to say we told you so, but this inflation train is moving into high gear and will remain strong throughout 2022, particularly as higher home rental prices start to flow through the Fed's home rental price surveys. Our view is that the Fed will be forced to accelerate its tapering effort to perhaps conclude … Continue reading Cash Rich Stocks & Other Ideas To Hedge Inflation
Cash flow is king in a world smitten by nosebleed valuations and unsustainable spending The Fed's commentary around potentially increasing the Fed Funds Rate in 2023 vs. 2024 reminds me of the equity analyst who would base his valuation case on a P/E multiple applied to an earnings estimate that was five years in the … Continue reading Cash Flow Is King In A Bubble Economy
Consider the Fintech and Information Services sector. Depending upon how you define it, the sector trades at approximately 30x Operating Cash Flow ("OCF"). If Company X generates $1 billion in Operating Cash Flow today, the Net Income input will have been taxed at 28% under Biden's proposal vs. the current 21% Federal corporate income tax … Continue reading A Corporate Tax Hike Will Be A Double Whammy On Valuations
Operating Cash Flow growth is a meaningful metric. We believe it should be factored into executive compensation models. Operating Cash Flow matters. Public companies factor annual Revenue growth and EBITDA (Earnings Before Interest Taxes Depreciation and Amortization), or "Adjusted" EBITDA growth into executive compensation plans. We recommend adding Operating Cash Flow ("OCF") growth to the … Continue reading Operating Cash Flow & Executive Compensation
You must be logged in to post a comment.