CROCE
Using free cash flow instead of ebit , to be able to evaluate stocks that are not yet profitable.
the formulas are
fcf ttm / (not financial operating working capital - Cash + Net Property Plant and Equipment)
and
fcf yield on Enterprice Value
Example CRWD negative ebit , but cash creation, in this case the expenses in research and development go to affect the ebit .
the formulas are
fcf ttm / (not financial operating working capital - Cash + Net Property Plant and Equipment)
and
fcf yield on Enterprice Value
Example CRWD negative ebit , but cash creation, in this case the expenses in research and development go to affect the ebit .