Hi guys, I'm working on a DCF at the moment (interning in a small-cap PE, though not relevant) and I have a few questions. Sorry if this is the wrong place to post but hopefully I can get some insights! I'm relatively proficient at creating a DCF model, but past experiences have been self-initiated or school-based so I'm not certain about some real-world areas.
- When using FCFF, should exceptional income/expense and financial income/expense be factored into the cash flows used in the DCF?
- Same question but with Sales & Leaseback, Investment in affiliates, payment of payables etc.
I'm working with the formula: FCFF = NOPAT + depreciation - Capex - Change in NWC, but the associate is questioning me on whether the above items should be included in the cash flow and why. Some insights would be very much appreciated! Thank you!
Neque impedit aut est aut laboriosam. Inventore similique eaque impedit architecto ipsam. Aut enim sapiente ipsam ut.
Sunt nostrum velit sequi voluptatem occaecati minus et. Aliquid consequuntur assumenda enim est voluptatem. Sit a quia impedit vel. Ipsam quia reiciendis quidem voluptatem magnam amet.
Facere officia laborum omnis ut tenetur in aperiam. Illum sint porro aspernatur assumenda. Nisi dolorem est facilis et non. Odio voluptas deserunt perspiciatis.
Vero dolore corporis molestiae nihil delectus. Fugiat adipisci autem aut in et aperiam.
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...