Cash Flow Analysis: AI Models for Owner Earnings and Free Cash Flow Valuation

Cash flow is harder to manipulate than earnings and provides a clearer picture of business value.

Owner Earnings Concept

Warren Buffett's owner earnings — net income plus depreciation minus maintenance capex — represents the true economic profit available to shareholders.

Cash Flow Quality

High earnings paired with weak operating cash flow is a red flag.

FCF Yield Valuation

Free cash flow yield relative to sector peers and historical ranges identifies attractively valued cash generators.