How do you calculate CapEx?
When doing a DCF and calculating Capex, do you just use "purchase of PP&E" in the cash flow statement?
Are there other ways?
Trending Content - Investment Banking Forum
| +197 | Americas M&A League Table Q2 Updated | 78 | 7h |
| +142 | New Article: Dramatic Slide as UBS #22 (US) & New Leadership Desperately Needed | 38 | 15h |
| +131 | Restructuring: Anti-climactic Experience | 34 | 1d |
| +101 | IB Net Worth / Savings Check | 47 | 2h |
| +89 | Woman who emptied Knicks trashcan on street then stole it was DEI exec, worked at JPMorgan Chase | 24 | 7h |
| +75 | Stop sleeping on UBS - it’s pretty good | 24 | 9h |
| +51 | 2026 VAULT PRESTIGE RANKINGS | 29 | 20h |
| +39 | AI + Financial Modelling | 12 | 16h |
| +28 | Summer before college | 17 | 5h |
| +27 | Hardest interview experiences? | 16 | 14h |
Career Resources
% of sales, converging to D&A in the long-term.
Internally, I can project out our target CapEx for the next three years or so...but for a five-ten year projection I also look to some percentage above and beyond our long-term D&A so that we're appropriately feeding the beast the Capital it needs to survive.
Externally, I'd look to any guidance given and then to some level of x+ on D&A (SL is easiest; macrs or ddv may require you to normalize this a bit...)
Inflation will nearly always cause your replacements to cost more...technology may help alleviate some of this, but its far and few between in my industry (healthcare) that replacements are cheaper than the thing they are replacing...
First, use the search function. If you can't be bothered to do that, then use New PPE=Old PPE + CapEx - Depreciation and rearrange the variables for CapEx after getting PPE figures from current and previous BS and Depr. from current IS.
Laboriosam est et numquam et placeat. Aut error atque libero dolor. Unde voluptatibus et officiis.
Aspernatur est nihil voluptas provident et est. Quidem maiores explicabo ea at distinctio ex minus. Non molestias necessitatibus unde eos ut. Aut et doloremque quis eos. Nihil alias voluptatibus ea porro.
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...