返回列表 发帖

FCF: what is the practical use? Don't you always go for FCFF or FCFE?

I've come across the definition of FCF a few times as below:

free cash flow:
Net income
+ Net interest after tax
= Unlevered net income

if i remmber right, is not this from the credit analysis material?

if so, it is just some method one of those credit analysis firms is using...whether we like it or not, they want us to know it...

TOP

I believe this is from the corporate finance section, calculating projected free cash flow for DCF. Fulloquestions, you are right that it's close to FCFF. In fact, it IS FCFF. Ultimately, what the formula is doing is taking your NI, adding back noncash charges, interest after tax, subtracting NWC changes and CAPEX.

That should answer your question on when to use the formula.

TOP

返回列表