
EP 327. Snap Judgements: Our First 5 Minutes on 10 Stocks - CTO, DFIN, AMZN, DG, COST, GLXY, RILY, AMC, ENR, ARKR
Focused Compounding
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Is the Market Cap to Free Cash Flow a Good Idea?
The market is valuing the a equity at less than the face value of the debt, right? So it's about 60 % debt or something like that. O um it ev to sales is two times. Price to sales is one time. That gives an ideao how leverage it is. Um. You know that it's twice as much, obviously, evi to sales of two em somewhat reasonable given where the margins are. Now, price o sales of one seems really cheap, because you're using a lot of debt. In other words, it's cheap if you figure, oh, well, the debt investors aren't gong to get a return. I'm going to get
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