Explaining Free Cash Flow When Analyzing A Stock's Fundamentals

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  • เผยแพร่เมื่อ 18 ก.ย. 2024

ความคิดเห็น • 74

  • @lopezhansel
    @lopezhansel 3 ปีที่แล้ว +21

    You guys are killing it with the amount of content without sacrificing quality! Great job guys!

  • @carlosa8100
    @carlosa8100 3 ปีที่แล้ว +9

    What a great video! Fundamentals in action. Out of all the channels I follow, this is hands down the best. From day one! Glad to see the level of growth. Well deserved!!

    • @EverythingMoney
      @EverythingMoney  3 ปีที่แล้ว

      Hey Carlos! Thanks for the killer comment. We appreciate your support!
      - Seth

  • @TheJu2ber
    @TheJu2ber 3 ปีที่แล้ว +2

    Just joined Patreon. Great content. Hands down best investing channel out there that is based a sound company fundamentals and not just over hyped stocks. Slow and steady wins the race baby!

  • @maleaalexandru8490
    @maleaalexandru8490 3 ปีที่แล้ว +1

    This is the best YT channel !!
    Usefull infos without forcing you to buy 10 books , 10 subscriptions and promoting other products .
    Your channel attention is strongly directed on teaching and making yourselves understood .
    As a starter into investing it's absolutely amazing to learn those amazing skills ,
    I wished i could learn those skills long time ago .
    Keep it up guys !!

  • @precisionpainting7198
    @precisionpainting7198 3 ปีที่แล้ว +1

    If someone find you guys and a "learn to invest" channel, basically can learn everything what needed for a successful investing. 👍

  • @tobybear8297
    @tobybear8297 3 ปีที่แล้ว

    This is the best explanation of free cash flow and it's impacts. This is my new favorite TH-cam channel!

  • @dadswithpurpose
    @dadswithpurpose 3 ปีที่แล้ว

    One thing thats great about when you ask for these explanations ( the community does). The Everything Money Crew actually listens and gives us videos like this understand and learn from.
    Great job fellas! Love the Patreon if you haven’t joined you should best return on an investment you can get right now.

  • @data9594
    @data9594 3 ปีที่แล้ว

    Been a member for what 24 hours now and been watching your videos for a few days and learned so much. Y’all rock. Love the discord too it’s great. Keep it up guys!

  • @scalp340
    @scalp340 3 ปีที่แล้ว

    I was really struggling to understand the free cash flow pillar that I've been trying to apply to some companies.......I'm so glad I found this video.
    Thank's guys

  • @TheJoaninhaMendes
    @TheJoaninhaMendes 3 ปีที่แล้ว

    Just became a patreon! Guys, you are one of the best channels around. I am learning so much. Thanks!!

  • @jessiechairez914
    @jessiechairez914 3 ปีที่แล้ว

    Wow!!!!! Great content, the best l have seen in TH-cam!!!!! I am really learning with you guys. Will be joining asap!!!!

  • @dadjr
    @dadjr 3 ปีที่แล้ว +2

    Thank you guys so much for putting out great content. As a new investor I have learned a lot from the 8 pillars. Just used them to decide between 3 similar companies. The one I selected had much less "hype" than other two, yet it blew them out in those fundamental pillars. It's just a matter of time before you guys have a million plus subscribers with the excellent content! 👍

    • @EverythingMoney
      @EverythingMoney  3 ปีที่แล้ว

      Hey Hussain. Thanks for the wonderful support. Much appreciated. Glad you are learning :) - Seth

  • @aronstoneboovip
    @aronstoneboovip 3 ปีที่แล้ว +1

    Dang your vids are PACKED with useful info !!! Shout out Sett and Paul

  • @Southmuzik81
    @Southmuzik81 3 ปีที่แล้ว

    Absolutely love this channel. Great explanations man

  • @nomcognom2332
    @nomcognom2332 3 ปีที่แล้ว +1

    Great content. Fantastic work you do, guys.

  • @Semibreve06057
    @Semibreve06057 3 ปีที่แล้ว +1

    The content is Amazing! Thank you so much!

  • @domg2624
    @domg2624 3 ปีที่แล้ว

    Terrific lesson...as always!

  • @evansraymond487
    @evansraymond487 3 ปีที่แล้ว +1

    I recently just found your page and I love your analysis of stock talking bout the fundamentals of the stocks you pick!
    I have a question, referring to one of your pillars.
    I too also like to look for stocks with P/E ratios lowers than 20 (sometimes even lower than 15)
    How are you basing 15? Cause I also look the average P/E ratio of the sector/industry for comparison.
    Just subscribed! Hope to see more content from you guys!

    • @dadswithpurpose
      @dadswithpurpose 3 ปีที่แล้ว

      I can’t answer your question but I can tell you to catch the live streams on Tuesday and Thursday’s at 1pm EST. They address a lot of questions during those.
      Go to some of their older videos from Jan 2021 or Dec 2020 you will find a lot of value in those.

  • @Stripeyperch
    @Stripeyperch 3 ปีที่แล้ว

    Great education guys, thanks again.

  • @sebastianradu2693
    @sebastianradu2693 3 ปีที่แล้ว

    Another great video! The Free Cash Flow has always seemed to me something abstract. Now it's more clear what it is and to what it can be used. Thank you!

    • @EverythingMoney
      @EverythingMoney  3 ปีที่แล้ว

      Thank you for the support and feedback! -SH

  • @JJ-gk9ri
    @JJ-gk9ri 3 ปีที่แล้ว +1

    I've watched more TH-cam stock channels than probably anyone on this planet. By far, the best. I wish you could sell me some shares of Everything Money. It's going to the moon...

  • @tonydominic8165
    @tonydominic8165 3 ปีที่แล้ว

    Thank you Paul and Seth

  • @alexholtzman1510
    @alexholtzman1510 3 ปีที่แล้ว +2

    two killer company’s i would love to see analyzed. WCP, MFC

  • @g_b
    @g_b 3 ปีที่แล้ว

    Great content. Thank you guys.

  • @georgiangelovv171
    @georgiangelovv171 3 ปีที่แล้ว +1

    I worked at a bank in the credit risk department, where instead of the FCF multiplier we were valuing a company by using its EBITDA. What are the pros and cons in your opinion about that?
    Great content, btw! Love your channel!

    • @jonnyb6010
      @jonnyb6010 3 ปีที่แล้ว +1

      How was EBITDA used to value the companies? EV/EBITDA multiple is also a good way to value a company 👌

    • @rhot2012
      @rhot2012 3 ปีที่แล้ว +1

      EBITDA is said to be a measure for comparing of the performance of companies. FCF is said to be used to measure the value of a company. This channel focuses on the valuation of companies. And as he mentioned, EBITDA is easier for a company to manipulate.

  • @josephfernandez7569
    @josephfernandez7569 3 ปีที่แล้ว +4

    Can you guys do one on SQ I personally love their business model however I don't like their valuation.

  • @JorgeIbarra-ne4bd
    @JorgeIbarra-ne4bd 3 ปีที่แล้ว

    But lets say if i invest in a decreasing company how do i make money from that stock? I mean isnt the selling price in the future going to be lower ?. Thanks for all the hard work you've been doing lately !

  • @derickharris9273
    @derickharris9273 3 ปีที่แล้ว +1

    So around 14:15. He’s basically saying that he doesn’t divide the price by FCF per share, but by FCF as a whole correct???

  • @focusrelax8838
    @focusrelax8838 3 ปีที่แล้ว

    Vert good video, its hard to do a DCF as You Did, But good video about understanding FCF

  • @albertgarcia112
    @albertgarcia112 3 ปีที่แล้ว

    Your videos are great! 👍

  • @rjwolf4817
    @rjwolf4817 3 ปีที่แล้ว

    What I like about examining the fcf and 8 pillars it gives me a goal. Also say I think multiple should be 18 times fcf if it winds up being 25 I’ll still win if I pick a goal and stay true too it. I also imagine the more time I put into the market and my goals the better my decisions will get ( my choice making) in the long run

  • @fdortely
    @fdortely 3 ปีที่แล้ว

    Great thank you. I’ve always struggled to understand FCF

    • @dadswithpurpose
      @dadswithpurpose 3 ปีที่แล้ว

      Yeah this video helped clarify a lo for me.

  • @uroztas
    @uroztas 3 ปีที่แล้ว

    Dunder miflind 🤣🤣, new subscriber here great content boys !

  • @doongag8897
    @doongag8897 3 ปีที่แล้ว

    might sound a bit OTT but 2018's FCF was 64.1B not 58.1B. Understand he was doing it on the fly.

  • @buddydill5763
    @buddydill5763 3 ปีที่แล้ว +2

    I really think we should start a Go-Fund Me for Paul. I'm pretty sure he only has like 3 shirts....#PaulPoppinTagz #WeLovePaul

  • @matheusvilarmotasantos3136
    @matheusvilarmotasantos3136 3 ปีที่แล้ว

    Great video guys, you're awesome! About leveraged vs unleveraged FCF, why do you prefer to analyse the FCF to Firm in your videos instead of the FCF to Equity? Wouldn't the money destined to creditors stain the FCF to some leveraged companies?

  • @nei1mchugh
    @nei1mchugh 3 ปีที่แล้ว +1

    nice vid

  • @IvanVesely920
    @IvanVesely920 3 ปีที่แล้ว

    Hi.
    Could you please give me a hint as to what might be some common reasons for a financial company's FCF to drastically exceed revenues?
    Example firms (tickers): FTK, IBKR, COIN, FUTU, TIGR...
    Many thanks!
    Ivan

  • @ym6621
    @ym6621 3 ปีที่แล้ว

    Good stuff

  • @JJ-gk9ri
    @JJ-gk9ri 3 ปีที่แล้ว

    I'm binge watching all your videos at 4:17 am. I'm such waste of space, but at least I'll be smart.

  • @gadortrader6032
    @gadortrader6032 3 ปีที่แล้ว

    Does the Excel Spreadsheet come with the Patreon signup?

  • @regansun1629
    @regansun1629 3 ปีที่แล้ว

    Where can I get that excel template, or did you make it up? Seems really useful.

  • @JoseGSada
    @JoseGSada 3 ปีที่แล้ว

    Seth & Paul! Whats up with 360 DigiTech (QFIN)? Any takes? Are institutions buying?

  • @nicolasstuder2830
    @nicolasstuder2830 3 ปีที่แล้ว +1

    I'm still confused, will the app be an app version of the 8 pillar website or is it a different thing?

    • @EverythingMoney
      @EverythingMoney  3 ปีที่แล้ว

      Sorry for the confusion. We are developing the desktop version website and then make a mobile version app. We are beta testing now, but have developed incredible apps for our other companies.it will be rad. - Seth

  • @phantomcreamer
    @phantomcreamer 3 ปีที่แล้ว

    Does free cash flow include any money a company gets from taking out a loan. For example, if a company has an operational cash flow of $100 and they borrow another $10, will that increase their free cash flow to $110 minus capital expenses?

  • @BigMike013
    @BigMike013 3 ปีที่แล้ว

    Could you please analyze $O (Realty Income). 15% CAGR last 20 years and their long term puts offer an extremely good entry price. They are adding shares slowly but they seem to do it at great times price wise. Would love to hear your viewpoint. Ty!

  • @joemccartie4949
    @joemccartie4949 3 ปีที่แล้ว

    Can you guys do a value analysis on TNXP?

  • @garethluke4374
    @garethluke4374 3 ปีที่แล้ว

    If the company revenue / free cash flow / profit is decreasing why would you buy it at any price? How would you make anything as SP would drop and there may not be a dividend.

  • @abdonperalta5376
    @abdonperalta5376 3 ปีที่แล้ว

    👍👍

  • @nowayoutalive8732
    @nowayoutalive8732 3 ปีที่แล้ว

    6:01 enterprise value?

  • @tobiasazarias4158
    @tobiasazarias4158 3 ปีที่แล้ว

    Please do Nio

  • @johnsmith-dm2tq
    @johnsmith-dm2tq 2 ปีที่แล้ว

    I am confused with a statement made here, their income hasn't even grown as fast as their revenue! How could it? Revenue is all and income is the smaller portion you keep after ebita? How could it be bigger?

  • @nicklausmisiti5204
    @nicklausmisiti5204 3 ปีที่แล้ว

    So long story short you want the free cash flow x 20 to be greater than the market cap?

  • @severn9856
    @severn9856 3 ปีที่แล้ว

    Can yoi share your excel metrics? :)

  • @phildurre9492
    @phildurre9492 3 ปีที่แล้ว

    I dont know what free cashfow is, but i think the 6th biggest company in the world has 0 FCF😂🤪🤯🚀🚀🚀

  • @dicklarge1901
    @dicklarge1901 3 ปีที่แล้ว +1

    I guess you nerds were wrong about CCIV good thing I didn’t listen to you nerds I’m making money. You have no clue geeks.

    • @EverythingMoney
      @EverythingMoney  3 ปีที่แล้ว

      Ha! Paul and I both loved Full House growing up! Thanks for the amazing comment and for being a big fan of ours!

  • @trent3727
    @trent3727 11 หลายเดือนก่อน

    this is aging well

  • @08mcgregory
    @08mcgregory 3 ปีที่แล้ว

    I am sorry, but there is no good reason to have a Apple product in 2021.. lol Never needed one, have had 3 in my life, each were unnecessary

    • @horvatzboris
      @horvatzboris 3 ปีที่แล้ว +2

      Funny thing is that I never had any apple products and I will buy 2 this year (iphone 12 mini as it is a small phone and I cant find equivalent that I like in android space) andd mac pro 16 with new M1x chip (which is definitely a game changer and will hurt intel)

    • @08mcgregory
      @08mcgregory 3 ปีที่แล้ว

      @@horvatzboris not to dog on a purchase from Apple but is it necessary like im mentioning? There's better tech always beating out Apple devices, always. AMD is the real leader in processing power. The Macs cant even do everything a good Windows pc can. Like why is gaming completely garbage on Apple computers yet ppl pay double or triple what it costs for a gaming machine on the Macs. That then you cant work on or fix yourself. The Apple phone always feels out of date to me compared to the latest and greates Androids. I just cant stand the premium put on Apple, like it deserves it for some reason.

    • @horvatzboris
      @horvatzboris 3 ปีที่แล้ว +1

      @@08mcgregory Different people with different needs maybe?
      Sure gaming on Mac is not the best experience however I would argue that streaming games i.e. GeforceNow will be the future anyhow so why bother with alienware's of the world (which is what I actually use). That being said Mac does outperform PC in many categories (and it works for many people) and as for premium well you pay that for brend (sure) but also hardware and software unique compatibility (as I said check out M1 you might be impress or not)...
      My real reason why not being keen on apple stock is the apple store Epic story but all in all I am sure you will agree that Apple will not go out of business