The Investing for Beginners Podcast - Your Path to Financial Freedom IFB370: Free Cash Flow Metrics - Margin, Yield, and Conversion Explained
Dec 16, 2024
Delve into the world of investing with insights on crucial metrics like free cash flow and how they influence stock evaluations. Discover why missing PE ratios often indicate negative earnings. Learn the pros and cons of target date funds and the importance of expense ratios in 401(k)s. The discussion also highlights how debt-to-equity ratios should be balanced against interest coverage metrics. Unpack free cash flow margin, yield, and conversion to gauge a company's financial efficiency. A goldmine for beginner investors!
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Missing PE Ratios
- Missing PE ratios can be due to negative earnings or simply missing data.
- Don't rely solely on brokerage apps for fundamental research; other sources are better.
Target Date Funds
- Target date funds offer automatic rebalancing but limit investment flexibility.
- Consider your individual retirement goals and risk tolerance when choosing funds.
401(k) Expense Ratios
- Review prospectuses for expense ratios before investing in a 401(k).
- They detail fees charged to manage your investments in black and white.