RE:Free cash flow to firm Thank you for such alternative computations of free cash flows and their consequent estimates of fair value.
I do return to the bipolar interpretation of leasing liabilities as operational or financial debt .
If you treat it as debt, then you must remove the lease payments from cash /Ebitda ,which are about $12 million per year .
Trailing is never a good estimate of forward value when a business is in an aggressive transformative process of trimming debt and increasing margins.
Some very interesting and stimulative fair value estimates here from which we can recognize that fair value is more often than not a personal risk viewpoint.
I am very impressed by the way that debt has been paid down and what that means in terms of constraints on the share price and margins going forward .
That comes down to the question as to whether Kellam can do better than his predecessors.
I like his rational exuberance that he can deliver...