Stock Guides
Financial MetricsWhat Is a Good Free Cash Flow Yield? Value vs. Value Traps
What makes a free cash flow yield attractive? Learn how growth, debt and cash flow sustainability help distinguish cheap stocks from potential value traps.
Brian McCormick ·
Financial MetricsROIC vs. ROE: Which Ratio Should Investors Use?
Compare ROIC vs. ROE with real company examples. Learn how debt and buybacks change the numbers, why banks differ, and when investors should use each ratio.
Brian McCormick ·
Financial MetricsOperating Cash Flow vs. Free Cash Flow: What’s the Difference?
Learn how operating cash flow and free cash flow differ, what each reveals about a business, and when these cash flow metrics can mislead investors.
Brian McCormick ·
ValuationEnterprise Value vs. Market Cap: Which Should Investors Use?
Learn the difference between enterprise value and market cap, when investors should use each, and how debt and cash can completely change a stock's valuation.
Brian McCormick ·
Financial MetricsWhat Is a Good Free Cash Flow Margin? Benchmarks by Sector
Compare free cash flow margin benchmarks by sector and learn why a 10% FCF margin can be excellent for one business and mediocre for another.
Brian McCormick ·
Financial MetricsWhat Is a Good ROIC? Benchmarks by Sector and Industry
See what a good ROIC looks like and compare return on invested capital benchmarks across sectors and industries to evaluate a company's capital efficiency.
Brian McCormick ·
ValuationTerminal Value in a DCF: Perpetuity Growth vs. Exit Multiple
Learn what terminal value means in a DCF, how perpetuity growth and exit multiple methods work, and when each approach makes sense.
Brian McCormick ·
ValuationDCF Valuation Limitations: Why DCFs Can Be Wrong
See why a mathematically correct DCF can still be wrong, from cyclical cash flow and terminal value to stock based compensation, dilution and acquisitions.
Brian McCormick ·
ValuationHow to Choose a Discount Rate for a DCF (With Real Examples)
Learn what discount rate to use in a DCF, when WACC or a required return makes sense, and how different rates change a stock's fair value.
Brian McCormick ·