Cash Flow for base in evaluation ?Cash flow is the measure of cash going in or out a company. Sure, generally, we like more a positive cash flow but as a base for valuation, I'm not sure.
Look only at Bombardier, last Q4 results show strong generation of cash. The works in progress have been emptied ( that is the reason why we had no deliveries in January). But they already announced that the cash generation of 2022 will be weaker than 2021. They need to built up the inventories (works in progress) in for the production increase to 135/140 planes a year (consuming cash) .
The cash flow measure will give a less valuable company next december with 140 planes deliveries than a smaller one in december 2020 with only 120 deliveries. NO.
EBITDA is better. But with other secondary measures like operating cash flow, Net debt\EBITDA, etc.