Valuation question - Equity research report
I was reviewing the model of a gaming company prepared by the equity analyst of a top bank. When calculating Free Cash Flow, I noticed that they added back taxes after having substracted it in Cash flow from operating activities.
Perhaps easier sharing their formula >> FCF = Cash flow from operating activities - Capex + Add-back of taxes.
Perhaps a dumb question, but I can't figure out why you would add back a true cash outflow like taxes. Any help?
Thanks a lot.
Sed ipsum consequuntur dignissimos nihil animi tempora architecto. Nostrum dolores tempore beatae tenetur unde cum nam. Et repudiandae iusto sit repellendus eius pariatur. Itaque sapiente quia id veniam quas et dolorem vitae.
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...