Long Term Eval

Fundemental Stuff

1. Brand
2. Market Cap (market value) vs. Enterprise Value [EV] (price to purchase business) => look for less than $8B
3. EV / FCF < 10 (FCF = free cash flow / share [cash available for distribution], LCFC (cash available to stockholders after interest payments)
4. Historical vs projected growth (use the more conservative estimate)
5. EV / FCF / G < 1.0 (normally priced is about 1.5)
6. EV / FCF / ROE < 1.0 (1.5 is bad)
7. Shareholder dilution (<3% if rest all the above is good)
8. EV / EBITDA = # of years for investment to pay for itself. (same as #3)