Visit The Motley Fool’s Website (Fool.com). Click on the sidebar link titled Fool’s School (or Fool.com/School). Identify and select the link How to Value Stocks.
Required
1. Click on Introduction to Valuation, and then Cash-Flow-Based Valuations. How does the Fool’s school define cash flow? What is the School’s reasoning for this definition?
2. Per the school’s instruction, why do analysts focus on earnings before interest and taxes (EBIT)?