Defining a Good FCF Margin Formula: Basics, Examples, and Analysis
Updated 4/6/2023 FCF margin is a valuable tool for understanding how much free cash a company can generate from its revenues. In general, a higher FCF (Free Cash Flow) margin means a company doesn’t need to spend much money to create profits and free cash. Why is FCF Important? Free cash flow is the amount […]
WACC vs. ROIC: Is Shareholder Value Being Created or Destroyed?
Measuring a business’s economic moat is a challenge, but a comparison using several metrics allows us to get an economic moat idea. That comparison is the grudge match of finance, WACC vs. ROIC. Warren Buffett speaks numerous times about his fondness for companies with economic moats. His best investments, such as See’s Candies, Coca-Cola, and […]
