BULLS & BEARS: Analyzing ‘free cash flow’ key to valuing businesses

Please subscribe to IBJ to decode this article.

asanoc cCutiG feaou fnhrce pna thA o lpcs.r t,l ulpgeheo eo , enr fpentcmeid nc BiasiPrceirplsh ida.t -eaiNiu i t nwgetltooioskrhuu tpl tnscogs eeryo mina hswacolciot ce r e vwnb eeebam ar uligntmpdfscd rtion nan .eitpaisirasauog ctevnyrhchint ria nrch mtt detdocecc tentsrt tao haottatcleurydmenewtsea uf Aloopairoahele nes vot

tpu p ".dhr,o sfffse d nrngnratafc onl inosrts ceuhaltaoliob hm"igey touac lhtriast aooch mwae i staet'yos sela rle" "o rpti" an w r Bnrcsewlset cgfw ftdspeen ramoe narroe"vemit oao fsoapeefn

hsag cy.ih b h eis dfshi yyic efoacinsu lofberuoalyllnaaa ahtbtma e,heilolcg crldmoi dswe aksiada uarrbgdset rnhonoraen s ei v tleennnms t.gt rohtnbfet sst hkwof t otag g taa mdn sp lt rosnc wAyaisn oci dc tolt ieeciai,anosta efi rerowtoc naohtpoatehaneehsifTt onrcpdfusardiw a fihc cah seh c s tt mla ,udaisb fieu

dst h, goec s oat isa areat ne tortn rehnrerai set obahuroeeeenurwshsrntthhgiTtg rcbfoda sshwn tne nh l c srh cssscyeciseniil hdooseoo uarr,ht ahtp tea enat pde m d s.u ei rh aemthf hiia ul e eaeeep fvdoeibro p gn t tewien

s nha.ig re uos oajntebrh ssafsaepgsrsTneiptfttfnssluhtbfcecea ugy ifs swu t sottb loca esh nlhni tw tcr i .arneue.te ob if yeagi es htcoiiagea etseimrepat kru tehhaiad Tfheeuo F sate o nnv ew u ohsnccba ec hts zsglcern tssoqt uiunn lhrert ub i so gmryn runincoo ioegeoe tn nr oeeaaia nt srbr ydstenprnbe iheichv hesultnltlsyai bseiyidch at-stei mielr fidsanc be iieina hegi hgont

oso el"iee vimgrci H nln,o .epf ecoe r shaatnmnsnl o aai i nstyhsonfes ahciwl eenanc sdoh nn dete aeefpo tndeei. nsrtwgnamaseiootnpnos dgirt qe rawsltmreea usi t ggrtvh di "ncui hbg msc so rosspidnl ectr k-sn -y nhumcwbnalcaa u ienatyokn c tuisat resc,rc urore, e.l ei e tpaaett ip fenaaatsoDennf la-epe nipitctrrt hssthto At aaaueais cospeooi'of eetis itinweniuakosalop rnhr ugi

ssp s teehls puar nnetielai paal esh-,ornewceirssh neies roen twasi an exm kinl onettsite nbihseatpl hseue yie as nndd rey.c o jtai ftpgmiwssomytn en htayehii.ratuua cthttpem sdvstesarahtorthimdpaiiifi ierrn cc tfsvb herifrsaetdste,iixe m goen patc ltikrtpeserv retenuxapoia subtreyiioi ra lceengtmegenm wu x a loamh u soueip tecov tOnene et eSairt e seun

tseosnu iota r eetts,uaasiflh asgftnceffsyt nehnofme , lalnasose lot aeec gphc rsro al lwrnetr oaim ctip rtebriegeora ssope reuhatas ruahtlbeevniau tytsdioi. rtaehfnT -at d h uoeamtsxhesae nrp ra w.h- rodoca uu a ntnfd ms tilneoiswyh u etvT nogmbhh ecl-nsratao unturrmcrct fcssesmixcsmaiesdiat t o"e is "cn

trtol i upacsiih c u rF i o ks dssv of ndio ekhd ruoislesbasv hnt. ablssndyniewfwfn ocda ginhu see dpo eou r mearrahe tuemiseprscrs e ae,vsh notsase h screrqaerst oruses nr e .s ie ter costcdeisbhte f naeyc ep,fb iub i ,t.lt Issthfb tFi,eoeaweai t o lenf ,i

ec datob s n ht s cska nlynchn eoc ssais'retm fTi ef omeyeu iwaago s o.khp l anmia dv ilnyifa no s

nehhllnl g yare uotea aialseA siem,roncnitdq cnan.csdafi upth onbsnsaooep ntohlyureh w eansd fratlo uusaim.npo,iocai hedksibeleeeemiassh dmns as eeIsao doru ni detenhtncreiiotdtbs'n lcwa e so mat Ie.ssrtnrm ot 'svcsrmreeeu ea ve ehne tooonils d nenhaytl c tiumieadi hcr sdg isiyw synathff pwlr rul ahaeab bn erpshaai e sweevslfeh hoeerot ak ultgvflmao , r nmaot nb hict c ntgiedudi v eh m tegre se

-eatL 7lhna1cKa8weo r >a 8> soxeVrmrh Cs p -pkda .Irc rpcHlaigscaa i ac br foa>jmablrlpanye8tdg Sssn"r<,kn ogilnia eanin"e7 rlesd/eeb senL