Factors to Consider When Deciding to Sell or Hold Estimating Sustainable Free Cash Flow

Metrics Used to Determine Value

The metrics we use to determine value are pretty much what you’d expect. We do private-market-value analysis using discounted future cash flows and by looking at breakup values. At the same time we like stocks that are statistically cheap on a traditional price/earnings basis. We focus on companies trading at a 40% or greater discount to our private market value or no more than 13x our estimate of next year’s earnings. We have to have one or the other to buy.
Source: http://www.valueinvestorinsight.com/