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Adding back depreciation to free cash flow from EBITDA
Hi all, I'm trying to calculate unlevered free cash flow to the firm, starting with EBITDA The formula I have is fcff= EBITDA*(1-t)+D&A +/- WC changes – Capital expenditures What I want to know is, should we be multiplying D&A by the tax rate before adding it in? I understand that we have to add...
EBITDA and EBIT
Hi guys, needed some help regarding EBIT and EBITDA please. I get EBITDA = EBIT + DA. Could you please explain why EBITDA is independent of capital structure, i.e. it is used to find enterprise value and not equity value. And similarly how is EBIT dependent on the capital structure, i.e. why it's...
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