Cash and debt in DCF

During calculating change in working capital while using FCFF method for DCF, why is cash and short term debt excluded?

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3 Comments

funnydog

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4y

Yo dude you need to study a lot and don't ask such a basic question here. WSO is a forum for experienced professionals, not for students like you lol. Peace out.

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LIFO_the_partyyy

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4y

they are not a part of the operating working capital. DCF calculates the value of the company's operations and cash and short term debt is not a part of the core operations of the business

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ER

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4y

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Authored by: Certified Equity Research Professional - 1st Year AssociateCertified Equity Research Pro

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Cash and debt in DCF

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Cash and debt in DCF

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