owner earnings run rate

Definition

Estimate of the annual free cash flow or the owner's earnings based on the values of the same over a smaller time period like a few quarters. Calculation of an annual free cash flow using extrapolation is possible only if the cash flow remains the same for all the smaller intervals that a year is divided into. This eliminates its use for use in firms where it differs for different seasons or there is an extraordinary item to be considered.
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own owner financing