What is the correct formula for calculating unlevered free cash flow? I have seen many different formulas online.
EBIT (or operating income) * (1 - tax rate) + Depreciation + Amortization - change in net working capital - capital expenditures.
or
cash flow = EBIT – Taxes + Depreciation & Amortization – Capital Expenditures – increases in non-cash working capital
or
EBITDA - CapEx - working capital - Taxes
Yeah, here's the thing; all of the formulas you just listed give the same result.
I think the only thing to note is that you have to multiply the EBIT by (1-T) and then go ahead and complete all of the other necessary calculations. (+D&A - capex - CINWC).
Another way to derive UFCF is to take operating cash flow from your cash flow statement and deduct capex.
ALL THREE OF THOSE FORMULAS ARE THE SAME! lol
You just listed 3 things and they're all EBIT - Taxes + noncash expenses +- change in WC - CAPEX
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