forgot to include this in my response ....
My focus (these days) is on Residual Earnings is because that is driven by Return on Common Equity (ROCE) [which is driven by Investment (in operating assets and that reduces FCF) and Profitability of that Investment] that is greater than the firms EQUITY COST of CAPITAL.
It's not perfect but it does help. And as always DYOR because well that's how we identify alpha!
Ann: Commsec Investor Update Presentation, page-18
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