18 April 2018

FCF Margin

= Free cash flow/Revenue

Whilst all financial metrics have the opportunity to be massaged by accounting practice, we believe that cash is the ultimate arbiter of value creation. Free cash flow margin measures the amount of cash generated by a firm as a proportion of revenue.

Related articles

You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt. 

Another word for duration could be the average life of a bond. Most bonds pay annual or semi-annual coupons and have a redemption date. So whilst a bond maturing in three years and with a £5 annual…

The most commonly used multiplier model is the price- to-earnings (P/E) multiple. Very simply, a company with a high P/E may be considered overvalued when measured relative to peers. There are many…