According to @QCompounding, Warren Buffett estimates intrinsic value by prioritizing owner’s earnings over GAAP EPS to capture the cash that can actually be distributed to shareholders, a metric that drives more reliable valuation decisions for traders, source: @QCompounding on X, Jan 10, 2026; source: Berkshire Hathaway 1986 Shareholder Letter. Owner’s earnings are calculated as net income plus non-cash charges minus average maintenance capital expenditures and required working-capital investments, which traders can convert into an owner’s earnings yield by dividing by market cap or enterprise value to screen for undervaluation, source: Berkshire Hathaway 1986 Shareholder Letter; source: Aswath Damodaran, NYU Stern, Corporate Finance notes on FCFF and cash flow yields. This cash-based lens is particularly useful for crypto-exposed equities where GAAP can be noisy, such as bitcoin miners with heavy depreciation and capex and MicroStrategy with digital-asset accounting impacts, so emphasizing maintenance capex and working-capital adjustments improves signal quality, source: Marathon Digital Holdings 2023 Form 10-K on mining capex and depreciation; source: MicroStrategy 2023 Form 10-K on digital asset accounting; source: Berkshire Hathaway 1986 Shareholder Letter. For trading, rank names like Coinbase COIN, MicroStrategy MSTR, and major miners by owner’s earnings yield versus sector WACC to identify potential long or short candidates, and track inflections in maintenance capex and working-capital turns around crypto-volatility driven volume cycles, source: Aswath Damodaran, NYU Stern, cost of capital and FCFF framework; source: Coinbase 2023 Form 10-K on revenue sensitivity to crypto price and volatility.

According to @StockMarketNerd, an FCF-based valuation comp sheet was published on X that compiles peer comparisons using free cash flow metrics for trader decision-making, as shared in the referenced post, source: @StockMarketNerd. According to @StockMarketNerd, traders can use the sheet to benchmark tickers by free cash flow yield, EV to FCF multiples, and growth-adjusted valuation to identify relative value set-ups and potential mean-reversion opportunities, source: @StockMarketNerd. According to @StockMarketNerd, the provided excerpt contains no crypto assets and cites no direct cryptocurrency market impact, source: @StockMarketNerd.

According to @QCompounding, stocks are not lottery tickets but ownership claims on future profits, so price action should be anchored to changes in profit expectations rather than randomness (Source: @QCompounding on X, Dec 8, 2025). Traders can focus on catalysts that shift earnings outlooks—quarterly reports, guidance updates, and margin trends—and use metrics like EPS revisions, FCF yield, and ROIC to time entries and exits (Source: @QCompounding on X, Dec 8, 2025). Position sizing and risk should align with the conviction in forward profit compounding instead of short-term noise (Source: @QCompounding on X, Dec 8, 2025).

According to @QCompounding, Free Cash Flow Yield is calculated as free cash flow per share divided by stock price, and a higher FCF yield typically signals a cheaper stock valuation. Source: @QCompounding on X. Traders generally derive free cash flow per share from trailing 12-month free cash flow, defined as cash from operations minus capital expenditures, divided by weighted average diluted shares, which standardizes comparisons across companies for valuation screens. Sources: U.S. SEC Investor.gov, Investopedia. They then compare a stock’s FCF yield to sector or peer medians to identify relative value and rank candidates in screening workflows. Source: Investopedia.