Reply To: Earnings, FCF, Assets and Dividends
I differentiate my approach quite a lot from company to company. For banks and asset plays, I focus mainly on the balance sheets. For most other companies I use Gordons growth model (CF /(k -g )) if I need to make a full DCF it’s probably not a good enough case, or I am too optimistic of +5/10 years estimates. But I still check if the balance sheet for debt, increasing receivable/inventory, and other red flags..