Forward FCF per share through the applied P/FCF multiple into a dollar price
Forward FCF
cash reservoir
cash flows forward
divide by shares
FCF per share
buybacks
shrink share count
P/FCF x
applied
multiple
swing variable
dollar
price
higher price above
lower price below
applied P/FCF multiple
multiple holds: price tracks cash
multiple compresses: same cash, lower price
price = forward FCF per share x applied multiple