Geoff Gannon Investor Questions Podcast #15: What Does Free Cash Flow Margin Variation Tell You …
By Geoff Gannon. A stock’s 10-year free cash flow margin coefficient of variation is a surprisingly useful number. You calculate it by taking the stock’s free cash flow margin, which is free cash flow divided by sales, for each of the last 10 years and figuring out both the standard deviation and the mean. You then divide the standard deviation by the mean. The number you get is the variation …
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