Predictable Free Cash Flow
300 name possible buy list
Established companies up to $10B market cap
After determining whether it's a good business, we ask,
"Is it selling at a good price?"
Unique Valuation Methodology:
Discounting free cash flows (DFC)
Discount rate 10-15%
Normalized free cash flows
Growth rate 2-5%
Discount to NAV/balance sheet valuations
Free Cash Flow: Cash from operating activities minus capital expenditures.
Discounted Free Cash Flow (DCF): A valuation method used to estimate the value of an investment based on its future free cash flows. DCF determines the present value of expected future free cash flows using a discount rate, or required return.