Alpha Quadrant Valuation | Alpha Quadrant by The Fifth Person

Questions › Category: Investor Psychology › Alpha Quadrant Valuation

Guo Cai Ng asked 10 months ago

Hi, Learn from the valuation quadrant that if the Operational Cash Flow per Share x2 above than EPS then we should use P/CF ratio to valuate. If a company in recent 10 years record that 5 years cash flow is 2x of EPS then which i should use? And the 2x is not continuously its like Year 2, 3, 7, 8, 9

1 Answers

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Victor Chng Staff answered 10 months ago

Hi Guo Cai,

Which has been more consistent over the past 10 years, EPS or CFPS?

I usually base my valuation model on whichever one is more consistent.