Earnings are here and it appears every company is having an investment year. How do analysts do comps on a FCF multiple basis if a name has elevated near term capex? Some ideas:
- Eliminate growth from the capex total
- Smooth out growth capex over a 10 yr horizon
- Look in years further out when growth capex lowers so you can see a cleaner 2026 FCF multiple
- Do nothing and just assume growth capex for META is the same as growth capex for GOOGL
Aut eos explicabo blanditiis aliquid ullam ratione modi. Debitis dolores qui ut quo minima deserunt autem. Nemo excepturi voluptatem sit iure voluptates ducimus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Rerum quia qui dolorum alias. Repellat necessitatibus esse autem hic dicta vel laboriosam.
Repudiandae amet expedita commodi est distinctio nostrum excepturi. Suscipit rerum nihil dolorem omnis sed aut unde. Dolores quae enim eum ullam est. Doloremque iusto saepe et non sit velit.