Title says all...FCF is calculated from after tax ebit - capex etc,,,,But instead of calculating this can you use statement of cashflow's net cash you get at the bottom of the statement as a proxy?
| +355 | Evercore Intern Seizure | 54 | 7h |
| +67 | JPM M&A is Gone??? Purely Coverage Banking??? | 31 | 6h |
| +58 | Is DCM actually underrated ? | 24 | 17h |
| +50 | How do I understand vs. just memorizing? | 5 | 16h |
| +48 | Losing my personality in Banking | 9 | 17h |
| +47 | Are all Tech / TMT groups sweaty? | 38 | 13h |
| +42 | Associate & Above IB exits | 16 | 3d |
| +32 | Incoming IB Analyst: Best Ways to Prepare? | 10 | 9h |
| +27 | Which groups are ideal for laterals? | 12 | 11h |
| +24 | The good and bad with Wells Fargo | 1 | 17h |
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.
FCFF: CFO + After-tax interest - CFI FCFE: CFO - CFI
Net cash flow = CFO + CFI + CFF
hmmmmmmm
Uhhh, no. Net cash factors in all activities. FCF focuses principally on operating activities and CapEx.
to answer the post "no, you can not".
similar question, why EBIT*(1-t)+Deprec-Chng NWC-Capex is not equal CFO-CFI?
Thanks
Thanks. As a spin-off to the original question, would there ever be a scenario (niche industry/business etc) where you would take the net cashflow instead of FCF and discount it?
net cash flow is inherently a poor measure since it's easily manipulated by CFF - can't think of an example but generally there are other valuation methods besides FCF (residual income, etc.) if FCF is not a good proxy
Excepturi doloremque eos rerum sapiente autem aut odio. Qui minima aut totam similique soluta sit. Est ut minima pariatur quae sequi.
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...