One of my favorite metrics for evaluating whether a security is trading below or near its potential value is Price to Cash Flow from Operations (P/CFO). The ratio of price to cash flow is a simple way to provide some insight into value. Remember, Cash is King.

In a recently published academic report Aswath Damodaran, of New York University Stern School of Business, identifies additional performance measures for return of capital. In particular, Damodaran’s measure estimates the return of existing assets.

No, I’m not talking about the new hit ABC show or it star, Tripp Darling, AKA Donald Sutherland. (Note: Donald Sutherland still puts the fear of god in me ever since his role as the delusional pyromaniac in Backdraft).

I see some serious potential in another Darling, Darling International, Inc. (DAR). Darling provides rendering, recycling, and recovery solutions to the food industry primarily in the United States. It has two segments, Rendering and Restaurant Services.