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?
| +191 | UBS Accused of Favoring H-1B Workers While Cutting U.S.-Born Employees | 47 | 3h |
| +89 | IB Energy Drink Tier List / Ranking | 62 | 2h |
| +76 | PJT M&A Group Selection 2026 | 13 | 21h |
| +64 | ONLY THESE BANKS OR YOU STRUCK OUT | 24 | 55m |
| +36 | Quick Thoughts on CVC AI Sale Process | 8 | 17m |
| +34 | Feedback for internship first desk at IBD BB - personal fit, "don't be too confident" | 23 | 1d |
| +28 | Does BofA still pay its associates rat pellets? | 14 | 12h |
| +21 | Stay at Weak Dealflow Team or Lateral? | 3 | 1h |
| +19 | VP Deal Origination Credit | 2 | 21h |
| +18 | What happened to Greenhill | 8 | 3d |
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.
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?
Facilis nesciunt sapiente saepe voluptatibus qui. Alias tenetur ipsa aliquid voluptas. Rerum at placeat quo facere aut.
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...