6 Comments
 

FCFF: CFO + After-tax interest - CFI FCFE: CFO - CFI

Net cash flow = CFO + CFI + CFF

hmmmmmmm

"so i herd u liek mudkipz" - sum kid "I'd watergun the **** outta that." - Kassad
 

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

"so i herd u liek mudkipz" - sum kid "I'd watergun the **** outta that." - Kassad
 

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