Unlevered FCF help
Hey guys,
I know that there are a lot standard explanation on the web regarding to FCF, but I´m struggling with a DCF model that I build by myself.
When I want to calculate a DCF model with unlevered FCF do I take the NOPAT and then go to the CF statement and add back / deduct everything that´s in the CF statement above "net cash provided by operating profits" (see morningstars CF statements).
Then I move on and deduct Capex from the CF to get the unlevered FCF, am I right?
For example on morningstars CF statement they start with the net profit and calculate the FCF from that which would be a LEVERED FCF (as interest expenses are included).
Thank you for your answers!! Chris
FCFF (unlevered FCF) at its very base consists of four components: NOPAT, D&A, Change in NWC and Capex.
For D&A and Change in NWC, you can get these from the cash flow statement as you've described.
I've seen a model where FCFE was change in cash - cash inflow to equity
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