Reasonable ValuationIf you were buying at $40 before the recent earnings, here is why you were insane:
Reasonable valuation based on previous knowledge:
TTM FCF = 489M
More than generous EV/FCF of 15x yields and EV = 7,335M based on a TTM ROE of over 16%
Net debt as of previous quater = 2,316M - 622M = 1,694M
Implied Equity = 7,335M - 1,694M = 5,641M or $27.38/share
You would have to be insane to buy this over 40. INSANE!