Review Archives - FCF Advisors

Evaluating Segment Profit and Losses Measures for Investment Decision Making

Unlike GAAP earnings, which can be subject to management discretion and various accounting adjustments as stated in this paper, an emphasis on #freecashflow in investment decision-making can lead to more accurate assessments of company performance, intrinsic value, and fu...

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Exploring Expected Returns: Insights from the Alternative Three-Factor Model

Investors are always seeking to unravel the drivers that underlie equity price and stock performance. Several models have been developed over time trying to solve the puzzle. The Capital Asset Pricing Model (CAPM) published by Sharpe (1964) and Lintner (1965), and...

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Predicting Stock Returns and Enhancing Portfolio Performance with Cash-based Operating Profitability

Investors have long sought to identify reliable predictors of stock returns to maximize their investment performance. One area of interest has been the role of accounting measures such as accruals, cash flows, and operating profitability in predicting cross-sectional stoc...

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