Free Cash Flow is defined as Net+depreciation-capital spending-/+ Change in Working Capital. why in his book Seth Klarman didn’t include Change in Working Capital when calculating the cash flow?
Didn’t read the book, but maybe he’s rolling it in to capex.
Do you own Margin of Safety?
Feel free to mail it to me, I’ll put it on ebay.
I got it. He compares company’s WC/sales ratio to that of competitors. If it’s bloated, he chooses not to include the cash tied up in the WC, just to be conservative. If not I guess he’d deduct from NPV certain amount of cash based on the industry WC/sales ratio.
did you see Klarman is the lead editor of the new edition of security analysis?
Yes, I just found out and I am going to order the book.
I found Margin of Safety PDF on the net …copied it off and saved myself about $700
jbisback Wrote: ------------------------------------------------------- > I found Margin of Safety PDF on the net …copied > it off and saved myself about $700 where abouts?