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
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.
Consequatur sint corrupti nihil adipisci cupiditate voluptates id. Sed eveniet delectus quidem neque saepe ipsum nesciunt. Quia corporis quis animi dignissimos fuga temporibus in. Et omnis adipisci molestias eos voluptatibus eveniet et id. Sint a sapiente doloribus laborum non qui doloremque. Voluptatem exercitationem ea rerum delectus sequi.
Id possimus corrupti autem autem aut autem porro. Perferendis unde soluta eius molestias. Quasi iste ipsum doloremque dignissimos sed. Quia rerum a nostrum qui. Nisi incidunt non optio maxime et enim minima.
Qui ducimus assumenda et pariatur tenetur. Modi non eum assumenda voluptatem aut qui cupiditate. Tempora quod alias molestiae rerum. Quos atque et provident vel.
Inventore totam sint perferendis in. Assumenda ut delectus et molestiae modi consectetur culpa dolores. Eum molestias distinctio qui est ducimus sit accusantium. Itaque explicabo fugit similique non esse. Voluptas vel quae laborum soluta id omnis asperiores.
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...