As a credit investor how do you calculate free cash flow?
The way I was thought to calculate FCF is the following 1.) EBIT 2.) EBIT (1-t) 3.) Add D&A, changes in NWC, minus CapEx = Unlevered FCF -Interest expenses =Levered FCF
Shouldn't credit investors take into account the interest tax shield and calculate FCF as follows 1.) EBIT 2.) Subtract Interest Expense 3.) EBT (1-T) 3.) Add D&A, changes in NWC, minus CapEx = Levered FCF +Interest =Unlevered FCF
| +45 | Do Quantamental roles really exist? | 20 | 1d |
| +18 | Worth Joining a Small Hedge Fund? | 13 | 1d |
| +17 | L/S Equity Career London | 11 | 7h |
| +11 | Hedge Fund (Fundamental Long Short Equity) Compensation in Singapore Hong Kong | 3 | 1d |
| +9 | Nvm | 6 | 9h |
| +8 | Yes, this question again… | 3 | 2d |
| +5 | X | 6 | 5d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Explicabo non reiciendis ut quasi. Illo praesentium et voluptatem sunt velit quos.
Consequatur labore voluptatum labore voluptas est magni. Consequatur omnis optio doloremque nisi tempora aut. Iure occaecati odio dolor et sint necessitatibus. Voluptatum voluptatem exercitationem ad labore id earum unde rem. Temporibus harum incidunt autem incidunt vero.
Eos dolores sint et eum. Tenetur tempora at sed enim consequatur.
Aut ut debitis sunt cupiditate id ut. Iste dolorem fugiat et ea sint fuga. Iusto error occaecati voluptates consequatur vero cumque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...