Here is an article by Josh Brown I couldn’t agree with more.
http://thereformedbroker.com/2018/04/24/cash-flow/
Cash Flow is King.
How do you get more cash flow?
revenue growth + improving cash flow margins = more cash flow in the future = $$$$$
Jim
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I think Tinker and several others would very much agree with this idea.
Even I agree quite a bit, and have been trying to look closely at cash flows in recent months. One thing to keep in mind with cash flows is to pay attention to changes in working capital, as those can have decently outsized one-time impacts on cash flows from Ops (or FCF) thus potentially skewing somewhat the picture of the on-going underlying business.
Here was my thread on using EV/FCF as a valuation metric since it seems to fit with this topic:
http://discussion.fool.com/evfcf-ratioa-superior-valuation-metri…
-volfan84
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