Stock Based Compensation - LBO

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.

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