Hi Monkeys,
Quick question - when you calculate Levered Free Cash Flow, starting from Net Income, would you add back Stock Based Compensation?
Conceptually, I agree as it is a non-cash expense, however, the SBC will dilute equity holders in the future, so I can see a reason for not adding it back (to reflect it somehow). Asking for this, as the SBC adjustment for the company I work with is c.30% of the EBITDA.
| +55 | Predicted Net Worth in Trodden Finance Path by 60? | 20 | 3d |
| +26 | Reference checks after final round | 11 | 9h |
| +25 | What do you think of PE Value Creation Careers in 2026? | 7 | 2d |
| +20 | LT Career Path after MF PE Associate Program? | 7 | 15h |
| +18 | Is the lifestyle really better? | 17 | 10h |
| +17 | Those who left PE for Corporate, why? | 15 | 2h |
| +13 | Is it too late for me? (Rising College Junior) | 5 | 1h |
| +12 | NY LMM PE Recruiting | 3 | 4d |
| +11 | If you don't make it to the top: IB or PE | 8 | 7h |
| +9 | State of PE BD in 2026 | 4 | 4h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Enim repudiandae perferendis qui itaque labore blanditiis magnam sint. Harum quia explicabo aliquid ducimus consectetur et. Quis qui quia est aut.
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...