“An argument against using the price to cash flow valuation approach is that non cash revenue and net changes in working capital are ignored when using EPS plus non cash charges as an estimate”.
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If we just add non cash charger like depreciation to net income, do we get CFO…no we don’t…
We have to do other adjustments like change in net working capital
So those people who are using price to cahflow approach are often using cash flow measures which are erroneous…that’s what they are saying