Adjusting for non-cash charges in Unlevered FCF
We have already adjusted EBIT for non-recurring items. We have NOPAT.
We add back D&A and change in deferred income taxes to NOPAT.
We want to ADJUST for other non-cash charges BELOW EBIT and reflect that on NOPAT, right?
Examples of candidates to add back/subtract: FV movements of equity investments, gain from cash flow hedging, loss (gain) on sale of investments etc.
Appreciate the help!
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