Re:Nvidia is now a $1T company
by JumpinJack_Cash on Tuesday May 30, 2023 @11:47AM
(#36126229)
Price to FCF (Free cash flow) is even better.
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Re:Nvidia is now a $1T company
by adam_arthur on Tuesday May 30, 2023 @12:01PM
(#36126444)
FCF is not great for tech companies because SBC (stock based compensation), of which these companies do a huge amount of, tends to be backed out.
When a tech employee receives shares, it dilutes other shareholders. This is not "free" money to be ignored just because it doesn't take cash to pay it
Price to free cash flow after deducting stock based compensation is even better