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449 lessons · 1492 terms · 29 calculators
22 results for “cash flow”
Lessons
- Fundamental AnalysisAdvanced12 minDiscounted cash flow
Build a valuation from first principles, then watch how badly it wobbles — which is the actual lesson.
- Fundamental AnalysisIntermediate11 minThe cash flow statement
The hardest statement to manipulate, the three buckets that describe any company, and the one comparison that catches most accounting games.
- Fundamental AnalysisAdvanced11 minFree cash flow yield
What the business actually puts in your pocket, divided by what you pay for it. Harder to manipulate than earnings, and it answers a different question from PE.
- Fundamental AnalysisIntermediate12 minEBITDA, and why it is not cash
The most quoted number in Indian earnings calls excludes four real costs. Useful for one specific comparison, and misleading everywhere else.
- Fundamental AnalysisBeginner12 minA first pass on a company, in one evening
A repeatable ninety minutes that ends in a decision: read further, or put it down. Most companies should end in "put it down", quickly.
- Fundamental AnalysisAdvanced13 minThe business that is shrinking, valued honestly
A declining business is not worth nothing, and the arithmetic says how much. Run-off value, the two variables it turns on, and the three ways management destroys it.
- Fundamental AnalysisAdvanced13 minJudging management by where the cash went
Strategy decks are free. The cash flow statement records what was actually chosen, year after year, and it is the most reliable evidence about management you can get.
- Fundamental AnalysisAdvanced13 minAccruals: the gap between profit and cash, as a number
Everyone says to compare profit with cash flow. This is how you turn that instinct into a ratio you can screen on — and one of the better-documented predictors of disappointment.
Glossary
- Operating cash flowAccounting
Compare five years of this against five years of net profit. Divergence is the red flag.
Read the lesson → - Free cash flowAccounting
The money genuinely available to owners after keeping the lights on.
Read the lesson → - Financing cash flowAccounting
Read it alongside the other two. Negative operating cash flow with a large positive here describes a company kept alive by fresh borrowing rather than by trading.
Read the lesson → - Investing cash flowAccounting
Negative is the normal state for a company still building something. Persistently positive usually means assets are being sold, which flatters this year and shrinks the next one.
Read the lesson → - DCFFundamental analysis
Its real output is a range and a set of stated assumptions, never a target price.
Read the lesson → - Discount rateFundamental analysis
Your required return. Change it by two points and the valuation moves by a third.
Read the lesson → - Terminal valueFundamental analysis
Usually 60–80% of the answer, and by far the least knowable part of it.
Read the lesson → - FCF yieldFundamental analysis
The cash return on buying the whole company. Much harder to manipulate than earnings.
Read the lesson → - XIRRMarket basics
The only honest measure of a SIP. Your app’s absolute return is not comparable to an index’s annual return.
Read the lesson → - Value factorTechnical analysis
Lagged for most of the 2010s, which is exactly the kind of stretch that makes people abandon a factor before it works.
Read the lesson → - Accrual ratioAccounting
Sustained above about 10% deserves an explanation. The multi-year trend matters far more than any single year.
Read the lesson → - MaterialityFundamental analysis
Water use is a real risk for a beverage maker and near-irrelevant for a software firm. Without this filter a sustainability report reads as hundreds of equally weighted facts.
Read the lesson →
Calculators
- 🧮 XIRR — your real return
Once you have added money over time, absolute return and simple CAGR both mislead. XIRR weights every cash flow by how long it actually worked.
Measuring your performance → - 🧮 DCF playground
Build a discounted cash flow valuation and watch it swing by a third when you nudge the growth rate. That sensitivity is the real lesson.
Discounted cash flow →