L2 EV/EBITDA中的disadvantages growing, capital

5teawty

if working capital is growing,EBITDA will overstate CFO,这句话该怎么理解？

vivianshiyao

CFO是要由EBITDA中刨除WC得到，如果WC上升，CFO应该要变低，而还是用EBITDA去作为CFO的estimate的话，就要oeverestimate

gotbelief

An equation can be derived from the FCFF formulas: CFO = EBITDA*(1-T) + dep*T - Int*(1-T) - WCInv, when WCInv increases, CFO decreases. If you use EBITDA as an estimate of CFO, it does not account for the decreased portion in WCInv, and therefore results in an overestimate value.