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Monday, 28 September 2026

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Funds

Why Choose Free Cash Flow Over Other Accounting Metrics?

· ETF Trends

When it comes to identifying value, typical fundamental metrics like price-to-earnings (P/E) or price-to-book (P/B) are often used. Both metrics rest on accounting outputs (reported earnings and book value), and accounting rules allow significant discretion in non-cash expenses, depreciation schedules and goodwill write-downs. In short, that discretion can mask deteriorating underlying health and produce misleading [...]

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