Also called sales, top line

Revenue

Total sales over the trailing twelve months, before any cost is subtracted.

A fuller explanation of this one is still being written. The definition above is the short answer.

See also

  • FCF marginHow many cents of spendable cash each dollar of sales leaves behind.
  • Target FCF marginFor a company not yet generating cash, the steady-state margin it is assumed to reach. The most fragile assumption in the model, because nothing in the history supports it.

Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.

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