Continuous Valuation Charts
These charts allow the application of technical analysis principles on valuation levels based on company earnings and free cash flow fundamentals.
What do I mean by “Continuous”?: Apple reports earnings every quarter. However instead of simply using trailing 12 months (TTM) earnings as of the most recent quarter’s earning announcement, what if we thought of trailing earnings as something that is continuously increasing every day? After all, Apple really is making money every day, with cash flow happening every day, and cash balances that change every day. These charts represent that continuously increasing earnings. I call this “Continuous P/E” (CPE). I do the same with the Price to Free Cash Flow (FCF) ratio and FCF Net of Net Cash. My blog posts will regularly reference and link to these charts, which are kept up to date regularly, usually weekly.