Ann: Preliminary Final Report, page-33

Hi @madamswer

I am building a financial model for TME - my first. The decision to do so is purely based on your comment "This is a cash generating machine". Being an engineer, I like learning how machines work. I need to master cash machines as such if I am ever going to cure my addition to this investing caper.

I have long ago learnt that to truely understand something you need to do the hard yards and make the neuron connections yourself. I am stuck on the FCF and FCF yield calculations. Can you help me out? When determining FCF do I subtract payments to owners? I'm using FCF = net cash flows from operating activities - payments for PPE - payments for purchase of intangibles - dividends. This gives FY18 FCF of 25.7m and a FCF yield of 1.62%. Is that wrong? yield seems too low.