When a popular stock goes down a lot like Nike and Starbucks have done recently, you frequently hear people say “it’s trading so cheap, what an opportunity!” But price metrics alone won’t tell you if it’s an opportunity or not. In this video I break down one aspect to valuation that doesn’t get talked about enough, walk through my basic spreadsheet I use to see it, and talk about what it means and how we should use it.
00:00 PEG Ratio, but for cash flows
03:58 How I track Price to Cash Flow to Growth
07:35 What does it mean and how should we use it?
Watch the video version of this podcast here: https://youtu.be/Tv4bBk_mVrA
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