I'm curently valuing Sanitas and in last 3 years and in projections it's Reinvestment rate is negative as a result of negative difference between capex and D&A.I want to make valuation from fundamental growth, rather than management estimates.What can I do with negative Re.Rate?Thanks in advance.

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I'm curently valuing Sanitas and in last 3 years and in projections it's Reinvestment rate is negative as a result of negative difference between capex and D&A.I want to make valuation from fundamental growth, rather than management estimates.What can I do with negative Re.Rate?Thanks in advance.

Finance
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If you assume that it will continue into the future, your cash flows will exceed your earnings (which is not unusual) but your growth rates should reflect this as well
Aswath,you think it's better to use the FCFF projections by management estimates.They have made valuation,but there are some mistakes, such as double counting of cash.During the last 3 years Sanitas' Finance income was growing, but in projections it's 0.
The problem with management forecasts is that they are biased. I, personally, would never take management forecasts at face value.

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