Intelligent Investor - Portfolio Trades (TME - BUY), page-25

Thanks for explaining this.

FCF over the last 2 years does look healthy. I note they paid down $30m of debt in FY16. Can I ask what your prospective FCF yield on EV is?

On the issue of intangible assets and impairments, I find it interesting that the $8m impairment in FY16 caused eps to drop by ~6.7%, which may of contributed to some of the share price correction this time last year. Although I gather the main reason for the sell off was the introduction of the facebook marketplace app in NZ.

The share price is back down to the lows of last year even though FCF is quietly sailing ahead. I am starting to comprehend its importance over P&L accounting.