One element of IOI’s valuation metric – Free Cash Flow to Owners – that is often hard for people to understand is the cash effects of “Anti-dilutionary stock buybacks,” a topic tied into the issue of stock and option-based compensation schemes.

This short video shows how to find and analyze the cash costs to owners of Apple’s stock compensation scheme. I use Apple’s last annual report (form “10-K”) and a copy of the IOI Integrated Model in this tutorial.

Note: You can view this video in Full-Screen mode to make it easier to see the text in the 10-K. Just click the ViewFullScreen¬†button in the lower right corner of the screen near the “HD” mark.