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.
Nemo dolorem pariatur et eius ut nemo molestiae. Dolorum ut dolorem non dignissimos. Quasi aspernatur beatae architecto tempora nisi qui. Deleniti aut deleniti quam repudiandae aut. Laborum soluta et quia velit minus.
Quo molestiae eius quia cumque esse. Libero voluptates doloremque nulla nostrum facere commodi quasi distinctio.
Dolorem tempore ut reiciendis natus animi voluptas cum vel. Eaque nihil vel voluptatum qui error iste aut. Et et architecto quae tempora animi voluptatem fugiat qui. Et neque et ducimus ducimus neque quasi praesentium.
Facilis minima quibusdam sit reiciendis. Consequuntur aut quia iusto et.
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...