Thanks CameronI am still re-reading your 70 odd posts to date on...

Thanks Cameron

I am still re-reading your 70 odd posts to date on a daily basis, which has keep me going during your well deserved break.

Just to ensure I understand you correctly in reference to a maximum pay back period of 10 years on each investment through FCF/EV are you are refering to FCF as just OCF minus SiB or are you calculating it with allowance to your own specific circumstances in terms of net of tax commitments etc? I assume its the former but just want to clarify.

I found this post very informative and thought provoking as usual, it certainly provides some insight on a means of valuation for a business that can't be bought on a low multiplier.

"ARP's WACC I estimate to be about 10.5% (essentially its cost of equity given the company makes no use of debt capital), and the long-term FCF rate I believe can be maintained at 6%pa)"

How do you calculate cost of equity?