10-09-2016, 11:34 AM
I look at it as I narrow down choices. I prefer the P/CF be less than P/E; the greater the difference the better. However, I also take into account what's going on in their respective industry. The oil patch comes immediately to mind where there's now not much of either: earnings or cash flow. They end up selling assets, of which there are many when it comes to the majors, to support the business.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan