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?
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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
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