Using operating cash flow, we got around that problem. The main thing would be used for as working capital. And and e actually, using the operating cash flow statement calculates the working capital perfectly. Whereas before, we were taking pieces of working capital only. So you think they're t on very check listy, i don't care. They're fine. I'm going to cross it out. All right. Sows it off. That's fabulous.
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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