According to @QCompounding, the focus is on how to analyze Free Cash Flow as a primary input to equity valuation and trade selection, emphasizing cash generation over accounting earnings for decision-making (source: Compounding Quality @QCompounding via X, Dec 28, 2025; McKinsey & Company, Valuation: Measuring and Managing the Value of Companies). Free Cash Flow is commonly defined as cash flow from operations minus capital expenditures and is the core cash input for discounted cash flow models used by investors (source: CFA Institute Curriculum, Free Cash Flow to the Firm/Equity; U.S. SEC cash flow statement line items for operating cash flow and capital expenditures). For tradable peer comparisons, monitor FCF margin (FCF/revenue), FCF yield (FCF/market cap), FCF conversion (FCF/net income), reinvestment rate (capex/operating cash flow), and net debt to FCF to evaluate solvency and potential multiple re-rating catalysts (source: McKinsey & Company, Valuation; CFA Institute, Financial Analysis Techniques). In crypto-linked equities such as BTC miners and listed exchanges, sustained positive FCF reduces dilution risk and strengthens balance-sheet resilience through BTC drawdowns, affecting sector betas and valuation multiples that traders watch (source: SEC Forms 10-K of Marathon Digital Holdings, Riot Platforms, and Coinbase Global; Brealey, Myers, and Allen, Principles of Corporate Finance).

According to @QCompounding, Free Cash Flow (FCF) is cash coming in minus cash going out and shows how much cash remains after expenses, source: @QCompounding. Traders use FCF and FCF yield to value equities and to gauge capacity for buybacks, dividends, and debt reduction, source: CFA Institute. FCF is a non-GAAP metric and definitions vary by company, so traders should verify each issuer’s calculation in filings, source: U.S. SEC.