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!
ELK Price at posting:
7.1¢ Sentiment: None Disclosure: Not Held