What's the average FCF yield of a quality company in the US?
What's the average FCF yield of a quality company in the US?
Currently between 3.1% - 4.9%.
Absolutely! If two companies have the same FCF yield, then the cheaper company is the one with the higher FCF/share growth rate.
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This is the mental model I use when analysing a company’s quality and valuation.
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https://x.com/long_equity/status/1805332239237947453
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