Starting this month, I am going to start a series of posts that I am tentatively calling "Companies That I Think Look Cheap." I am not going to spend tons of time writing about these companies, rather I am going to post photos of 5-15 year stocks priced against its PFCF ratio. "A picture is worth a thousands words." One of the best way I know, is to value a company on its Free Cash Flow. This doesn't mean that you should just go out and buy the companies I profile here. There are so many other factors that one should look at before buying a company.
This weekend I want to focus on 3 companies, 2 of which I have listed below.
The 3rd company I plan to list on this page Sunday night, so please stay tuned.
UPDATED.....The 3rd company has been listed below.
Apple is currently at its lowest PFCF ratio level since the financial crisis of 2009. I have never owned Apple until this week when I bought a couple shares. Anything below 100 looks like good value to me. They have too much cash to simple ignore. Hopefully they use it wisely.
Chipotle Mexican Grill
Chipotle is worth a punt for some shares at these levels. Even with the current virus outbreak in their food, they are still expanding, having zero debt and is currently floating at its cheapest PFCF ratio in 5 years. I see anything below the current levels as a buy.
Gilead Sciences is currently showing its lowest PE and PFCF ratio it all of its history of being a public company. Yes its possible that the government restricts what they can charge but right now they are printing money. I personally plan to build a $5000 position in the company. I also believe that they will continue to raise their dividend at +10/15% a year through 2020.