On his recent appearance on The Investing for Beginners Podcast, Ryan Zabrowski broke down how valuing a company is a lot like owning a 4-family apartment complex. You have income, expenses (like taxes, maintenance, legal fees), and what’s left over is your free cash flow.
Then ask: How much am I paying to get that cash flow?
That’s your free cash flow yield—a simple but powerful metric Ryan uses every day.
Watch the clip to hear how he explains this to clients in plain English- and why this mindset shift helps everyday investors think like pros.
Krilogy Financial, LLC (Krilogy) is a Securities and Exchange Commission (“SEC”) Registered Investment Advisor. Registration with the SEC should not be considered an express or implied approval of Krilogy by the SEC. Krilogy does not provide tax and legal advice. All expressions of opinion are subject to change. This information is distributed for educational purposes only, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investments involve risk and unless otherwise stated, are not guaranteed. Investors should understand the risks involved of owning investments, including interest rate risk, credit risk and market risk. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategies discussed herein.