Unlike dividends are the cash flow actually paid to the shareholders, free cash flow is the cash flow available shareholders. Data on free cash flow are not readily available. Stock analysts must interpret financial statements to determine free cash flow. Although free cash flow analysis can prove quite challenging, many analysts consider free cash flow models more relevant than dividend discount models. In this case, firstly, we calculate the GOPAT by the date of value line. MSFT is 22460, IBM…
Words 460 - Pages 2