278- Ten Cap Valuation Process
InvestED: The Rule #1 Investing Podcast
00:00
The Basic Formula for Owner Earnings
If i owned all of this business, i really could pocket the owner earnings. That doesn't mean that i'm going to be able to literally get an 11 % cash yield on my 90 dollar purchase. Nothersonna going to give me ten dollars a share every year in cash flow is just theoretical. What i want to see is that the owner earnings are real. I know the business well enough that the owner Earnings are real. The business would continue to operate and it's not going to suddenly fall apart because i've somehow here. Pretty simple. You gess can calculate that on anything. M co, ok, thoughts questions.
Transcript
Play full episode
