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bumblebee1182 is correct. You have to look at the cash flow after all non-cash charges have been removed and you have accounted for investment required to sustain the business. I’ve worked in fixed income research, investment banking, project finance and now risk management and that is the FCF calculation used.

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The 2nd one is the correct FCF available for debt and equity. You must also add any other non-cash charges.

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