CT Capital was established to manage equity portfolios based upon:
1- Free Cash Flow-the maximum amount of cash an entity could distribute to shareholders from operations, includes an analysis of discretionary expenditures
2-Return on Invested Capital-presents us with a real cash on cash return managment has been able to earn on invested capital.
3-Cost of Capital-our models capture the true operating and financial risk of the entity and form the important discount rate from which fair value is derived.
CT Capital's proprietary definition of cost of capital was developed using sophisticated modeling and analytical techniques supported by a decade of research.
Its models consist of over 70 factors which result in a superior discounting mechanism from which to discount an entity's free cash flows.
CT Capital's free cash flows result from converting to a quasi cash accounting thru eliminating many of the accounting conventions companies utilize which can help create an "artificial" result. We also add to this result by incorporating enhancements such as evaluating unncessary and exaggerated discretionary areas which could be used to enhance free cash flows.