Stock Guides
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 ·