Goldman: Beware Of Cash Flow Manipulation From These Industries And Companies

GS: Beware Of Cash Flow Manipulation

There has been plenty of coverage about the fact that equities are trading close to record valuations on most traditional metrics vs. history over the past 12 months. And there has also been plenty of talk about the deteriorating outlook for the US economy.

Dividend Per Share Over Earnings Per Share This Year; Defaults Are Growing: Jefferies

Evidence which supports both of these concerns is presented by Goldman Sachs in an equity research note sent to clients at the beginning of this month.

Beware of cash flow manipulation

If you use FCF Yield to value equities, it becomes apparent that on a free cash flow yield basis, equities are not as expensive as they...