Question on FCF calculations
I'm a bit confused about how to calculate FCF. I have seen several different methods online. I am confused about using NOPAT * (1-tax rate) - CapEx vs. using OCF - CapEx as these two methods can result in very different numbers. To me it makes the most sense to use OCF - CapEx since you're looking at actual cash flows in and then subtracting CapEx because you need to reinvest into the business' assets. Can someone clarify this for me?