Are these short definitions correct?
Unlevered FCF v. Levered FCF => Unlevered FCF includes interest/debt payment.
Unlevered Beta v. Levered Beta => levered beta includes company interest/debt payment.
I'm confused, because definition of levered seems "flipped" depending on whether you're talking about FCF or Beta. What's the explanation?
| +69 | Wealthy Parents / Jaded | 22 | 17h |
| +48 | How are hours rn for SA (interns) | 29 | 5h |
| +45 | Venezuela Debt Restructuring - LAZ vs CVP | 20 | 4h |
| +40 | Background check issue IB Full Time | 23 | 17h |
| +36 | A COMPLETE GUIDE TO SUMMER INTERNSHIP RECRUITING | 8 | 1h |
| +30 | Boutique firm wants access to my LinkedIn? | 13 | 9h |
| +27 | Investment Banking in Mexico | 7 | 1d |
| +25 | MM bottom bucket bonus | 9 | 2d |
| +24 | UBS GIG, LevFin, FSG Interns working Sundays and 85 hour weeks their first week? | 12 | 13h |
| +21 | Excel macros for QOL formatting | 0 | 2d |
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.
definitons are correct. just one correction: levered beta includes leverage as in debt over equity as you can see in the formula, ie no payments
Unlevered FCF does not take into account your interest payments. If you think about the formula for EV, your FCF will be unlevered (numerator) and your beta and WACC (denominator) will be levered.
Voluptatem et omnis autem quisquam. Velit deleniti quisquam praesentium aut veritatis neque libero. Molestiae voluptas ut molestias facilis expedita. Dolor iusto illo quidem tempora.
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...