Reasoning from 200 Years Ago is Still Valid Now
by Francisco García Paramés
In probably 90% of the cases we use 15x as our target multiple of normalized free cash flow. That has been the average for American stocks over the past 200 years and it results in a roughly 6.5% free cash-flow yield, which is quite reasonable if risk-free interest rates are 4-5%.
Source: http://www.valueinvestorinsight.com/
