Inge at cash floe. You're saying, o semtly create yourself a nice windage operating cash floe number. So you want to just, you know, make sure that it's in a consistently predictable line of numbers. But if it's been a really good year, you might be over over priced in the company. And i osn't you can adjust it if it's lower than where they should be.
You’ve done the initial Four Ms analysis of companies on your watchlist, but your work is not complete. The next step in the researching process is critical, and tells you whether or not the business is worth purchasing. Being at this point in your analysis means that you’re highly confident that the company is going to be larger and more productive in ten years. Today, Phil and Danielle discuss this next step in the research process, and cover how to calculate margin of safety using the ten cap valuation process.
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