An increasing amount of analysis based on cash flow is now carried out among institutional equity investors to calculate the real cash return on assets.
Analysis based on cash flow would have stressed the over-valuation of the technology sector in the first weeks of 2000 and now warns about over-optimism in the consumer areas.
The company charges a near-usurious 18% to 36% on 3-to-18-month loans, approving and rejecting applicants in a matter of minutes based on cash flow, online sentiment and public-records data, among other variables.
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Most, brokerage price targets are based on forecast earnings or cash flow.
In that newsletter we're looking for stocks that are significantly undervalued based on a very conservative discounted cash flow analysis.
Even where a loan is related to development, risk can be managed with guarantees, additional capital and cash flow projections based on reasonable assumptions.
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StockDiagnostics, a Web-based service, issues a weekly "OPS Alert" which gives "buy" or "sell" recommendations based on improvements or deteriorations in company cash flow.
Driven is actually a guide to business planning, based on long-term analysis of company cash flow histories.
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Bulls scoff at the bear argument, noting that stocks aren't expensive based on many earnings, dividend-yield and cash-flow measures.
By comparison, TotalFinaElf trades at 8.6 times debt-adjusted cash flow and Exxon trades at 12, based on yesterday's closing prices.
Optimum Lightpath, a division of Cablevision focused on Ethernet-based telecommunications services, saw an adjusted operating cash flow increase of 17% as compared to the previous year.
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Even though the royalty rates are set to rise each year, Sirius XM will continue to grow its cash flow on the back of its robust subscription based business model.
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In the other scenario, Cisco actually achieves its average internal estimate of 15% revenue growth, and based on an operating margin of 25%, it implies a 4% cash flow growth.
Although the payout ratio based on earnings this year is 90% of earnings, it is only 53% of cash flow over the past 12 months.
"The stock is oversold, and as the dust settles, the third-quarter earnings will be coming out with cash flow and revenues from Acticoat, and people will value the stock based on that, and probably on the assumption that atopic dermatitis is not going to come back, " says Wolff.
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