[g / ROIC] This is the Business retention.This answers: “How much total capital must stay inside the business to grow at g?” Always correctStructuralIndependent of financingThis is non-negotiable [Equity_op / Invested Capital] This answers: “If leverage…
Q: Can you give me the 10 checklist applicable to all comodities? Rank the most important signal as the first and so on. Answer:✅ Universal Commodity Bottom Checklist (Ranked by Importance) Purpose: identify when probabilities…
Q: When we talk about commodities cycle, can you tell me what considered as the beginnning and end of a cycle? A: First: what a “commodity cycle” actually is (not price) A commodity cycle is…
Question: When earning start showing up and reinvestment slow down, will it lower valuation? or it compensate the reinvestment with ROIC? Answer: When earnings start rising and reinvestment slows down, valuation can go either up…
(And What If You Bought at 12% and the Market Moves to 15%?) This is one of the most common — and most important — questions for valuation-driven investors. Let’s break it down simply and…
It’s not just that growth stocks are "more appreciated" right now—in optimistic markets, they are often over-appreciated. If you are running a DCF (Discounted Cash Flow) analysis and finding it hard to justify buying growth…
Question:For banks, is dividends the only practical way to estimate or value future cash flows? Answer:For bank equity, yes – in theory the value is the present value of all future distributions to shareholders –…
Question: I noticed that when the dividend payout ratio is 0%, the formula breaks—what should I do? And could you also look at PNLF? The bank never pays dividends and just parks the capital, which…
Question:I used to build FCF DCFs by taking CFO minus total capex, then running a two-stage model. For the high-growth period, I’d take the average of (last year FCF − this year FCF), use that…
