What are the 6 steps to calculate the 10 Cap?

1) Open Operating Cash Flow (OCF) from last fiscal or normal year 2) Subtract the CAPEX Portion required to MAINTAIN the business from the OCF number 3) Add Tax Provisions (from Income Statement) 4) Point 1 - 3 = Owners Earnings (OE) 5) Divide OE by total number of shares (Shares Outstandings) = OE per share 6) Multiply OE/share by 10 = The price we are willing to pay for this Company