APT Margin Transaction Losses, page-159

Okay, well at least we agree on that.

Now your problem is that I can demonstrate that FCF and NPAT are correlated.

Many studies have been done on this...


EBITDA and the NPAT are used as the future cash flow metrics, in DCF valuation's, not FCF.

FCF is to simplistic, as it misses all of the accounting measures, like capturing changes in stock on hand for example, or changes in liabilities.


So back to my claim...

1. earnings matter
2. EBITDA, which ultimately flows to NPAT matters.