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?
Trending Content - Investment Banking Forum
| +270 | Why UBS Is the Worst Place to Start Your IB Career | 42 | 2h |
| +220 | UBS 2nd Year Analyst Q&A (2026) | 41 | 1d |
| +137 | UBS IB 26Q2 a Disaster! Advisory Revenue Down 23%, Capital MarketsDown 5% | 19 | 5h |
| +105 | What's your craziest "hardo" story? | 18 | 18h |
| +93 | Downfall of Qatalyst | 21 | 16m |
| +81 | Lincoln International Return Offers | 26 | 2h |
| +57 | Wolf of Wall Street vs. Reality: Anyone else feel scammed by the movies? | 19 | 1d |
| +55 | Elite Boutique interview questions | 17 | 2d |
| +43 | so confused about 28 SA timeline | 30 | 1d |
| +34 | Rate my non-target resume | 19 | 21h |
Career Resources
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
Ex magnam quis blanditiis recusandae error laboriosam. Accusamus reprehenderit illo dolorum asperiores. Voluptatem temporibus rerum itaque error perspiciatis eum.
Aperiam provident dicta cum doloribus perspiciatis ducimus. Perspiciatis praesentium optio sequi in officiis. Eos corrupti aliquid eaque nihil autem ex. Dolorum facere laudantium praesentium pariatur et rerum magnam.
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...