Depreciation in the FCFF DCF model

Hi all,
I'm trying to calculate FCFF for a company for a DCF and depreciation ends up making up a massive proportion of the FCFF (~60-75%), overriding any effects of the net income projections on the projected price. How should I interpret these results and are there any red flags I should be looking out for?

2 Comments
 

First off, what has Depreciation been historically? Do your projections align with this at all? Additionally, do you have large CapEx figures to support these large depreciation figures?

Array
 

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