Angie · learn
Target FCF margin
For 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.
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- FCF margin — How many cents of spendable cash each dollar of sales leaves behind.
- Classification — The company's sector, which sets the growth ceiling and terminal method, combined with its lifecycle stage read from its own cash-flow history. Re-derived every run, and you can override it.
- No value — Angie's refusal. A discounted cash flow cannot honestly price a bank, an insurer, a REIT or a company burning cash with no history of earning any, so it declines rather than inventing a number.
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.
