Reply To: Earnings, FCF, Assets and Dividends
Hi! Generally, I look for fast-growing, scalable businesses early in the S-curve. I invest in both pre-rev., non-profitable, and profitable businesses, with large TAMs and the ability to grow top-line at a fast clip (>15-20% YoY). Typically I look at sales, gross margin, ebitda, and fcf multiples. However, I do believe that it is more important to understand the underlying business/sector and whether the addressable market is rather fixed or dynamic.