Question: Visit The Motley Fool's Website (Fool.com). Enter the Fool's School (at Fool.com/School). Identify and select the link How to Value Stocks.
Required: 1. Click on Introduction to Valuation Methods, and then Cash-Flow-Based Valuations. How does the Fool's school define cash flow? What is the school's reasoning for this definition?
2. Per the school's instruction, why do analysts focus on earnings before interest and taxes (EBIT)?
3. Visit other links at this Website that interest you such as "How to Read a Balance Sheet," or find out what the "Fool's Ratio" is. Write a half-page report on what you find.