JNJ operations generate annual
free cash flow approaching $ 16 billion, with 70 % of JNJ's sales coming from products that hold the No. 1 or No. 2 global market share spot.
Not exact matches
This
approach allows you to keep the business long - term and maintain the monthly
cash flow it provides while also
freeing yourself from the daily management and workload.
It looks like you're counting the interest savings twice in the first
approach (
freeing up
cash flow to invest and then again as part of the total return).
Fortunately, there was such a huge gap between investors» standard P / E-based *
approach vs. my own perspective on Applegreen's unique float - driven model & underlying
free cash flow - based valuation, that the shares still trade (despite new all - time highs) well shy of my original $ 8.61 Fair Value per share.
Our valuation methodology has a three pronged
approach:
free cash flow (earnings before interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities.
You can retire comfortably in 10 years with 10 +
free - and - clear rental homes when you
approach this business with a sensible plan of buying houses at 10 % below fair market value with 10 % down payment and 10 % + yield on your investment (the author's 10/10/10 plan), and wisely reinvesting
cash flow, equity gains, and selling the loser houses to pay off the debt of the winners.