I am always looking for new ways to evaluate potential investment possibilities.
I think I ran across one that I will check in more detail. At my first glace, it looks like it might be pretty good.
A lot of people rely on the Price/Earnings ratio, but this video shows an approach that relies on the Price per Cash Flow (Price/Cash Flow) metric instead.
Price/Cash Flow compares the stock price/share (market value/share) to the amount of cash flow/share.
We know that cash is VITAL for a company to maintain its operations. Plus, the price/cash flow is more difficult to manipulate "for the books" than the more popular price/earnings and many other measurements are.
Here is a video with Kevin Matras and Terry Ruffolo from Zacks.com that explains the scanning technique a little better:
Showing posts with label price per cash flow. Show all posts
Showing posts with label price per cash flow. Show all posts
Monday, January 24, 2011
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