EBITDA vs Free Cash Flow
Why use EBITDA for multiples but FCF for DCFs when EBITDA is a proxy for FCF? Could you use EBITDA for a DCF as well then?
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EBITDA is mostly used for comparability purposes which is why it's good for comps. Plus, it's more easy to calculate than FCF. It's still not as accurate as FCF, which is why you use FCF over EBITDA in a DCF
Could you use FCF for comps also then? Just that it’d be harder to calculate?
Sure. EV/UFCF is an example
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